Support for ENTEL-Peru program from three European banks

(December 14, 1992).- A loan operation with a syndicate formed by three European banks was today signed by CAF President & CEO Enrique García in Spain, where he is on an official visit.

The loan for over US$19 million was granted to CAF by Banca Commerciale Italiana (Italy), Sudameris Bank (France), and Union Bank of Switzerland.

The loan will be mainly used to finance purchase of capital goods and services of Italian origin by Empresa Nacional de Telecomunicaciones (ENTEL) of Peru for its telecommunications expansion program.

CAF granted a US$42.6 million loan to ENTEL/Peru to finance the direct foreign currency costs generated by acquisition of goods and services for two subprojects: digital telephone expansion and digital transmission, respectively, under the program.

The objective of the subprojects is to install 105,000 telephone lines and 48 switching units to increase the number of subscribers in 45 localities by 100%. In addition, digital telephone exchanges will be installed to interconnect 11 localities with the analog microwave trunk network to take national long-distance traffic.

According to the CAF president, the signing of the agreement is an example of the interest of European financial institutions in collaborating with projects considered priority for the development of the Andean countries.