Venezuela: Historic change in the Andean Development Corporation

An Extraordinary Shareholders' Meeting of the Andean Development Corporation (CAF) unanimously approved an historic amendment to the Agreement Establishing the Corporation. After ratification by the congresses of the five Andean countries, the amendment will open the way for the existing 11 non-Andean countries and Series C shareholders, along with other countries of Latin America and the Caribbean, to full membership of the Corporation.

CAF President & CEO Enrique García said, “This important decision deepens the Corporation’s commitment to strengthening a model of sustainable development with social inclusion which reinforces the regional integration of Latin America.” This is a task of primary importance in the strengthening of democratic governance in the region, which is implemented through conceptual and financial support for a renewed regional development agenda, by creating initiatives that promote integrated stability, efficiency and social equity, he added.

In the last five years (2000-2004) CAF has approved US$16 billion in favor of its shareholders for investments of over US$30 billion, destined to improve infrastructure, and stimulate social development and the productive sectors in both public and private spheres. These operations were made possible by the institution’s financial strength and the confirmation of its excellent risk ratings by the main international rating agencies, permitting a permanent active presence on global financial markets. The Corporation’s activity in these capital markets has recently received recognition with three prizes awarded by the prestigious financial magazines Euromoney (best issuing agency of the year), Emerging Markets (best bond issue for development finance) and LatinFinance (best multilateral).

CAF is the main source of external financing for the five Andean countries, as well as being an important promoter and financier of the regional integration process.