Representative office opened in Brazil

To deepen relations with Brazil and strengthen financial cooperation for the benefit of the Latin American region, the Andean Development Corporation (CAF) opened a representative office in Brasilia, the first in a non-Andean country, Enrique García, executive president of this multilateral financial institution, announced today.

“This decision – García said – confirms CAF´s deep Latin Americanist vocation whose objective is to respond opportunely and efficiently to the financing needs of its shareholder countries in response to their development plans.”

The Representative Office in Brasilia is headed by José Vicente Maldonado, CAF official of Ecuadorian nationality, who moves from the same post in Bolivia.

Brazil has been a CAF shareholder since 1995. Up to August 2003, the country had received approvals for $14.20 billion, with a total current portfolio of $496 millions.

One of the most important operations approved is an A/B cofinancing for $150 millions, which is the first for a Mercosur country. Through this operation, the CAF attracted international funds for financing the Emergency Energy Program, executed by the Eletrobras utility. Also, operations were approved for $110 million for various clients in the financial sector to finance working capital and foreign trade in the private corporate sector.

The opening of the CAF office is the result of the excellent relations that the institution has had with the Brazilian government and development agencies, especially the Brazilian Development Bank (BNDES). The two institutions have an alliance to cooperate on financing projects, mainly physical infrastructure, contributing to the integration effort through support for the South American Regional Integration Initiative (IIRSA).

In this context, CAF and BNDES recently held a seminar in Rio de Janeiro to define financing mechanisms for physical integration projects in the 12 South American countries. The event was attended by representatives of the governments of the region, the private sector and financial institutions.