New agreements with Mexico

(Caracas, April 2, 1992).- CAF and the Mexican government will have US$30 million facility available for foreign trade operations between member countries of the Andean Group and Mexico.

Through two lines of credit - one approved last week in the CAF headquarters in Caracas and a second to be signed at the next IBD annual meeting in the Dominican Republic - CAF and two Mexican financial institutions (Bancomex and Banamex) will join forces to facilitate Andean-Mexican exports and imports, strengthen the exportable offer of the Andean Group, contribute to the creation of new production companies, and facilitate opening to third markets.

CAF President & CEO Enrique García said the agreements were important not only for the six countries involved but also for the Latin American integration process in general. "Establishing links of cooperation with all countries of Latin America and the Caribbean - he said - will strengthen regional economic integration and permit us to move forward more rapidly to an expanded economic space."

Mexico was the first non-Andean country to participate in the CAF capital. In 1990 CAF signed with Nacional Financiera - institution authorised by the Mexican government to subscribe to 4,000 series "C" shares for US$20 million - a technical cooperation agreement which will open an important market for Mexican and Andean businesses in projects of pre-investment studies and technical assistance, establishment of industrial parks and free zones, as well as a fluid exchange of business, investment, and financial and technological contributions.

The US$10 million line of credit already approved was granted by CAF to Banco Nacional de Mexico (Banamex) to finance exports from the Andean subregion to Mexico. In 1990, Mexican imports from the Andean Group exceeded US$300 million.

The second line, for US$20 million, is for the Mexican Foreign Trade Bank (Bancomext) which will be used to finance companies resident in any of the Andean countries which import primary products, raw materials, durables, parts and spare parts, capital goods and services of Mexican origin.