Swiss government grant reaffirms confidence in CAF

(Caracas, December 9, 1992).- Two loan agreements were signed with the Swiss government and the Union Bank of Switzerland during an official visit to Switzerland - on December 7 and 8 - by CAF President & CEO Enrique García.

The agreement consists of mixed finance granted to CAF: 20 million Swiss francs (US$14 million) in the form of a grant from the Swiss government (US$4.9 million) and a loan from the Swiss bank (US$9.1 million).

The funds generated will finance up to 85% of the purchase of capital goods and services of Swiss origin for projects financed by CAF in the public and private sectors, executed in the member countries of the Andean Group.

The CAF president said the agreement would strengthen relations between Switzerland and the Andean subregion, and provide effective support for development of priority projects." He added, “it is an example of the confidence and strength placed in CAF by the international financial world, based on seriousness in meeting obligations and a 99% portfolio recovery rate, unique in Latin America."

"The Swiss government grant is another convincing example of the interest that country, and Europe in general, have in cooperating with Latin America; above all, if they have an effective and reliable vehicle to channel funds to final users, which is CAF."

CAF maintains permanent contact with governments and private companies in the Andean region as a way of getting to know their needs and adopting more pragmatic mechanisms and instruments to satisfy them and contribute to the sustained growth of its member countries.

Finally, last year, the Corporation took aggressive action on the world's most important capital markets with a view to maintaining a stable presence, and generating funds on the best possible conditions.