US$63 million in loans approved

Of this total, nearly US$63 million was for loans to Venezuela and Colombia. Three agreements were approved for US$45 million to finance Andean exports.

With respect to fund generation, new CAF instruments and bonds will be issued for US$100 million and lines of credit for US$53 million will be available from three European banks.

On this occasion, Pedro Sorensen was appointed new vice president & deputy CEO in accordance with the Establishing Agreement and General Regulations of the Corporation. Sorensen will take up his position on October 17 for five years, replacing Roberto Guarnieri whose period began in October 1983.

These decisions were taken during the 59th Board Meeting held in Caracas on October 6 and 7, chaired by the new Peruvian Minister of Industry, Commerce, Tourism and Integration, Iván García Cabrejos who assumed the presidency of the body.

INTERALUMINA A US$57.5 million loan was approved for Interamericana de Aluminio, CA (INTERALUMINA) of Venezuela to finance acquisition of foreign goods and services for the project which will expand capacity from 1.3 to 2 million metric tons annually to meet growing domestic demand for aluminum, allocating the surplus to international markets.

INTERALUMINA, set up in 1977, is located in Matanzas (Ciudad Guayana, Bolivar state). Its main activity is conversion of bauxite into aluminum and marketing.

MONÓMEROS COLOMBO-VENEZOLANOS A US$5,270,000 loan was approved for Monómeros Colombo-Venezolanos SA, Andean multinational company, whose main activity is production of caprolactama and nylon fiber. The company was formed in 1967 with the participation of the Venezuelan Petrochemical Institute (IVP), the Industrial Development Institute (IFI of Colombia), and the Colombian Oil Company (ECOPETROL).

The funds will be used to install a plant in Barranquilla, Colombia, to finance 40,000 metric tons annually of tricalcium phosphate for animal nutrition. This product will replace the imports that the Colombian concentrated animal foodstuffs industry currently makes, as well as imports of mineralized salts.

NEW FUNDS The Board approved a total of US$53 million in lines of credit granted by three European banks.

A US$30 million line of credit was signed with Banco de Bilbao of Spain to finance products of Spanish origin, along with Italian and French.

The line of credit with Banque Generale of Belgium will increase from 200 to 500 million Belgian francs (around US$8 million) given the successful use of these loans by the Andean countries.

The Board approved a US$50 million line of credit offered by the Ljubljanska Banka of Yugoslavia to back negotiations between Yugoslavian companies and industries in the countries of the subregion.

The Board also authorized issue of CAF instruments and bonds for US$100 million as part of its fund generation program.

EXPORT FINANCE The Corporation was authorized to sign three agreements to finance the value of the exports of Bolivia, Colombia, Ecuador, Peru and Venezuela in the Andean Trade Financing System (SAFICO).

The first loan for US$15 million is for Monómeros Colombo-Venezolanos. The second for US$20 million is for Ecuador with the central bank as executing agency. The third for US$10 million will be signed with Banco de Bogota, Colombia.

TECHNICAL COOPERATION Two technical cooperation operations were approved: one for US$300,000 to support the Colombian National Program for Capital Goods in designing a global system of promotion for these goods in the Andean area.

The second for US$101,515 goes to the Venezuelan Ministry of Environment and Renewable Resources (MARNR) for the Quality of the Waters of Lake Valencia project. This initiative covers the integrated environmental cleanup of the lake basin which is located in an important area for the country because of its integral-urban and demographic and agricultural aspects.

INVESTMENT PROMOTION PROGRAM The Board authorized the CAF administration to continue negotiations with the UN Development Program (UNDP) and the UN Industrial Development Organization (UNUDI) to design an investment promotion program aimed at improving the capacity to identify investment opportunities, preparation and evaluation of projects of member countries, and giving users access to the UNUDI system for project dissemination and search for investors.