Panama signs membership agreement

During the IX Andean Presidential Council – held recently in Sucre, Bolivia – the Republic of Panama and CAF signed an agreement for membership of this country and adoption of actions which lead to its implementation in the near future.

The agreement was signed by Panamanian President Ernesto Pérez Balladares, and CAF President & CEO Enrique García, who agreed on the progress made in the integration processes of the region and the importance of the role of CAF – currently formed by ten Latin America and Caribbean countries – as promoter of trade and investment, and executor of an extensive physical infrastructure program in the road, energy and telecommunications areas, which are fundamental for stimulating these processes.

Andean Community/Mercosur An Andean Community/Mercosur Declaration was also signed during the presidential meeting, which expresses "the firm political will of the parties to speed up the technical work needed for the formation of a free-trade zone as soon as possible." The document emphasizes, "the significance of physical integration as a basic element for stimulating integration" between the two economic groupings and agrees "to promote the adoption of measures and actions aimed at achieving an effective interconnection between the two integration schemes."

Non-reimbursable funds for Paraguay Also in the integrationist context of the presidential summit, CAF granted non-reimbursable technical cooperation funds for US$180,000 to the Paraguayan Foreign Ministry to partially finance the organization of the IX Meeting of Heads of State and of Government of the Group of Rio.

The agreement was signed in the presence of Paraguayan President Juan Carlos Wasmony because this country currently holds the Secretariat Pro Tempore of the Group of Rio.

Paraguay, which became a CAF shareholder last February, is the most recent member, joining Bolivia, Colombia, Ecuador, Peru and Venezuela (the A and B series shareholders); and Brazil, Chile, Mexico Paraguay, and Trinidad and Tobago (the C series shareholders).

Act of Sucre: recognition for CAF The IX Andean Presidential Council issued the Act of Sucre in which the presidents reaffirm their wish to deepen the integration process and move toward a common market. The act was signed by the presidents of Bolivia, Gonzalo Sánchez de Lozada; Colombia, Ernesto Samper; Ecuador, Fabián Alarcón; and Venezuela, Rafael Caldera. The meeting was also attended by the presidents of Panama and Paraguay, the former as observer and the latter as president pro-tempore of Mercosur.

The Act of Sucre emphasizes the sustained growth of CAF in a context of financial solidity, and recognizes the institution’s achievement on the world's most demanding international capital markets where it has generated funds for over US$1.60 billion through bond issues. The declaration also underscores the Corporation's role in financing projects and activities in favor of the integration of the countries of the Andean Community, and with the rest of Latin America and the Caribbean.

The Heads of State said they were pleased with the forthcoming membership of Panama, and with the entry of Brazil and Paraguay into the institution, which will facilitate the financing of integration projects between the countries of the Andean Community and Mercosur. In addition, they recommended that CAF continue its actions aimed at the participation of other countries from the region in its capital.

The next Andean Presidential Council will be held in Ecuador in the first quarter of 1998.