Paraguay becomes full member

(Special, December 16, 2008). In a solemn ceremony held in Salvador de Bahia, Brazil, during the Mercosur Summit, CAF President & CEO Enrique García and Paraguayan Finance Minister Dionisio Borda signed an agreement for the country’s full membership of the multilateral organization.

García said the agreement with Paraguay reflected consolidation of CAF’s Latin American dimension, noting that all Mercosur countries are now full members of the Corporation. “With this agreement Paraguay will be able to deepen its presence in CAF, as well as accessing a substantial number of loans for project finance in the public and private sectors in favor of its development and regional integration," the CEO added.

Paraguay now becomes a "Series A" shareholder and formalizes its subscription of US$189 million to CAF ordinary capital stock. Added to its existing equity holding of US$7.5 million, this new contribution raises its subscribed capital to US$196.5 million. The South American country also agreed to subscribe US$36 million to the institution’s guarantee capital (subscribed callable capital).

Since its membership as "Series C" shareholder in 1997, Paraguay has maintained close relations with the Corporation. As of November 30, 2008, a total amount of US$94 million had been approved in its favor for integration projects, foreign trade operations, and working capital for commercial banks and microfinance institutions. At this date, the country has a portfolio of US$40.7 million.

Apart from its credit operations and project finance, CAF operates an integrated support program for countries with non-reimbursable funds. For Paraguay, in a timely response to the emergency situation affecting indigenous communities, García approved a US$500,000 donation in early December to finance the Basic Response in Indigenous Settlements Program implemented by the Paraguayan government.