US$1.34 billion approved for Argentina, Brazil, Costa Rica, Mexico, Panama and Paraguay.

(Caracas, December 12, 2006).- A report on activities in 2006 was offered in Caracas by CAF President & CEO Enrique Garcia, who announced a record figure of annual approvals of US$5.66 billion. For Series "C" shareholder countries (non-founding members) approvals totaled US$1.34 billion, representing 24% of total approvals by the Corporation for the period.

The CAF integrationist dynamic present in Latin America

"CAF has deepened its wholly Latin American vision and agenda, expanding the number of its shareholder countries to 17, with a growing operating presence in the region and an active and outstanding role in regional integration," Garcia said.

As part of this strategy CAF continued its support for the Puebla-Panama Plan in 2006, when Colombia joined as full member, contributing to the linkage of this regional strategy with the integration process in South America through the South American Regional Infrastructure Integration Initiative (IIRSA). Four CAF shareholder countries are now participating in the Puebla–Panamá Plan: Colombia, Costa Rica, Mexico, and Panama.

CAF made headway this year with strengthening its presence in the most important integration schemes and consensus-building blocs, in both hemispheric and Latin American and Caribbean spheres. Its active financial participation in the Andean Community and Mercosur and its presence in a series of summits: Latin America-European Union; heads of state of Mercosur and Associated States; South American Heads of State; and Ibero-American, among others has permitted the institution to promote in these multilateral forums an integrated development agenda, strengthening and expanding the role of its programs in the areas of physical and economic integration, competitiveness and productivity, governance, human development, and the environmental agenda of the institution.

With respect to approvals in favor of Series "C" shareholder countries, García said that a total of US$604 million was approved in favor of Brazil, including US$200 million for the Municipal Government Support Program (PRAM), which will grant long-term loans in national currency to Brazilian municipalities that meet eligibility requirements.

For Argentina, García said that in 2006 loans for US$580 million were approved, mainly for the energy and transport sectors, two basic areas of economic activity to which the institution has been directing its support in that country, with a view to sustaining the process of Argentine economic recovery.

In favor of Panama US$58 million was approved, including a US$53-million loan for the Panama City mass transport system, whose objective is to reduce vehicle congestion and offer user rapid mobility, as well as reducing accidents and vehicle gas emissions.

For Mexico US$10 million was approved to strengthen the microfinance system in that country, through a line of credit granted to Banco Compartamos to finance micro-enterprises.

In addition, a US$25-million Rotating Line of Credit was granted in favor of the Latin American Export Bank (Bladex), as part of the CAF strategy to support Latin American and Caribbean banks in their efforts to promote regional trade, which is part of the integrated development agenda promoted by CAF for the benefit of its shareholder countries.

Lastly, for Costa Rica and Paraguay, loans for US$40 million and US$3 million were approved, respectively, to strengthen the financial systems and foreign trade of these countries.

Integrated development agenda

The CAF President said the Corporation has concentrated its efforts on an integrated development agenda which aims to improve the living conditions of Latin Americans, through sustained growth of quality, that is, development which generates employment and is inclusive. García proposed the need for this agenda to be based on three fundamental aspects: stability, efficiency, and equity. To do this the agenda must take into account the principles of environmental sustainability, increased international participation, and democratic governance, with the participation of public and private sectors, civil society and the international community.

As part of the strategy to promote more and better infrastructure in Latin American countries, CAF has received special support from Spain, a shareholder countries since 2002. Spain is sharing successful models and strategies for infrastructure development with Latin American countries, particularly in the areas of strategic planning of national infrastructure, road conservation, development of urban mobility observatories, development of trans-South America infrastructures, financing and management of infrastructure with mixed formulas, improvement of the quality of port services, and airport modernization.

Lastly, the CAF Music Program, concerned with social rescue and strengthening civic culture by using music to contribute to the integrated formation of human beings, was expanded this year to the favelas (slums) of Rio de Janeiro and San Paulo in Brazil, in its choral chapter and its teaching, and juveniles and child sections.