US$1.06 billion in new loans to support Latin America

• US$400 million in contingent line of credit for Uruguay.
• Approved US$310 million for two operations in Ecuador
• US$250 million for Bolivia
• US$100 million to strengthen road infrastructure in Paraíba state in Brazil.

(Caracas, July 10, 2008).- The Andean Development Corporation today approved operations totaling US$1.06 billion for the benefit of Bolivia, Brazil, Ecuador and Uruguay.

"The operations announced today - CAF president & CEO Enrique Garcia said - respond to the priorities of these shareholder countries in the areas of social development, macroeconomic stability, regional integration and environment. All approvals benefit the citizens of all these countries, in line with the Corporation's objective of promoting economic growth in Latin America which is inclusive and equitable."

For Uruguay, CAF approved a US$400-million contingent line of credit in favor of the Ministry of Economy and Finance to back execution of the government’s public debt management strategy.

Ecuador benefited from approvals of US$310 million for two operations. First, US$200-million contingent financing for integrated response to disasters caused by natural emergencies to be executed by the Ecuadorian Ministry of Economy and Finance. The second operation provides partial financing for the Quito road network. The executing agency is the Quito Empresa Municipal de Movilidad y Obras Públicas (EMMOP-Q).

For Bolivia, the multilateral organization approved US$250 million for the Social and Economic Infrastructure in Marginal Areas Program. This loan has two aspects, first, it supports execution of the economic program contained in the National Development Plan (PND), which the Bolivian government has been implementing since 2006 with the objective of increasing opportunities for citizens. Second, the funds assigned will promote fiscal savings in order to reduce service of the Bolivian external debt and improve its profile. The executing agency is the Ministry of Development Planning.

Lastly for Brazil, CAF approved a US$100-million loan for the Paraíba State “Nuevos Caminos” Highway Paving and Recovery Program with guarantee from the Federal Republic of Brazil. The purpose of the operation is to connect isolated and marginal rural areas with more developed areas which will increase commercial, social and cultural exchange for the benefit of the poorest sectors of Paraíba state. The executing agency is the Paraíba State Highway Department.