Solidarity with the Ecuadorian people

(Caracas, May 7, 1993).-- A non-reimbursable technical cooperation grant for 285 million sucres was granted to Corporación Financiera Nacional of Ecuador (CFN) to relieve the serious damage caused by the natural disaster following the blocking and later release of the waters of the powerful River Paute.

This tragedy has been affecting the Ecuadorian people since March 30 last when an avalanche sent 50 million square meters of earth and rock onto the River Paute, which, in turn, repressed enormous quantities of water forming a lagoon which eventually reached a depth of 80 meters and a length of 16 km.

A month later, on May 1, this immense lagoon broke the natural dam which had formed, razing 2,000 hectares of crops, over 100 km of roads and railways, ten bridges, dozens of craft centers and hundreds of homes.

The balance of the worst natural tragedy in Ecuador in the last 50 years is tragic: about 300 dead, 15,000 families affected and immense material losses of over US$300 million.

To relieve the situation, CFN formed an emergency fund to help the inhabitants of Azuay and Cañar provinces which until yesterday had formed a beautiful holiday valley and agricultural center.

The funds contributed by CAF will increase the fund, which will be channeled into non-profit organizations for productive craft units and microenterprises, by providing support for purchases of machinery, equipment and working capital, as well as training and technical assistance for the units.

With this action, CAF demonstrates its solidarity with the Ecuadorian people who live in the devastated provinces in the south of the country.

The agreement was signed on May 7 in CAF headquarters in Caracas by CAF President & CEO Enrique García, and CFN general manager Leonardo Stagg.