US$400 million for Peruvian financial system

(Caracas, November 1, 2007).- The Andean Development Corporation announced the granting of new lines of credit for US$150 million for Corporación Financiera de Desarrollo (Cofide), US$150 million for BBVA Banco Continental, and US$100 million in favor of Scotiabank Peru, totaling US$400 million. This approval, in support of Peruvian financial institutions, reflects the capitalizing role that the Corporation plays in Latin America through its efforts to strengthen the lending capacity of financial institutions for foreign trade, working capital and investment for companies in low-risk sectors with high value added.

CAF President & CEO Enrique García said, "The Latin American financial sector is facing a series of challenges and opportunities in reconciling its role with globalization and competitiveness, which is why it is assuming and integrating – with growing responsibility - the principles of sustainable development in all its activities, and this explains our interest in strengthening the sector."

Cofide is the Peruvian state development bank whose purpose is to raise funds and provide financial intermediation for promotion and financing of productive investments and investments in public and private infrastructure. The institution operates exclusively as a wholesale bank.

BBVA Banco Continental is the second largest Peruvian bank and a longstanding CAF client. Backed by BBVA Group, Banco Continental has become one of the best banks in the Peruvian financial system in terms of ratios and efficiency levels, as well as the quality of its managerial team.

Scotiabank Perú opened in May 2006, product of the merger of the former Banco Wiese Sudameris with Banco Sudamericano, after acquisition by Scotiabank Canada of a majority block of shares. The bank provides full-service, concentrating on retail banking. In June 2007 it was Peru's third bank.