|
|
|
| |
| Additional information |
| |
| Corporaciуn Andina de Fomento (CAF) |
| |
| |
Mission statement:
Mission
“We promote sustainable development and regional integration by efficiently attracting capital resources to provide a wide range of financial services, with high value added, to the public and private sectors of our shareholders countries.
We are a competitive, client-oriented financial institution responsive to social needs and supported by a highly specialized staff.” |
|
 |
|
Overview:
The provision of products and services by CAF is one of the fundamental pillars of its mission, which is to strengthen and expand its role as promoter organization of Latin American integration, and reinforce emphasis on the sustainability of all its operations.
CAF services are targeted at the governments of the shareholder countries and the public institutions and private or mixed companies which operate in these nations.
These services are aimed at strengthening the Corporation’s competitive advantages in the areas of infrastructure, industry and financial systems; promoting integration of public and private action in shareholder countries; and strengthening its catalytic, innovative and integrationist role in the region.
This section contains information on the products and services offered by CAF which are:
Loans at short, medium and long term
Project Finance without recourse or limited recourse lending
A/B loan facility with multilateral institutions and international banks, including A/B loans Financial advisory service
Guarantees and avals
Partial credit guarantees
Equity ownership
Treasury services
Technical cooperation
Lines of Credit
Other services
Management of third-party cooperation funds
CAF manages and supervises the funds of other countries and organizations, generally non-reimbursable, destined to finance programs agreed with donor organizations which are in line with Corporation policies and strategies. Such is the case of the resources of the International Fund for Agricultural Development (FIDA) (www.ifad.org) which CAF manages as partner institution. These funds are used to alleviate hunger and rural poverty and improve the living conditions of the indigenous peoples of the region. CAF also manages a technical cooperation fund for the Spanish Economy Ministry for pre-investment projects in the areas of integration, institutional reform, infrastructure, energy, social development and environment. |
|
|
|
History:
The idea of setting up a financial organization to stimulate and promote the integration of the Andean region had long been in the minds of the pioneers of the integration process. However, the creation of the Andean Development Corporation began to take place in 1966 following the historic signing of the Declaration of Bogotб in the presence of its framers, President Carlos Lleras Restrepo of Colombia, President Eduardo Frei Montalva of Chile, the president of Venezuela at that time, Raъl Leoni and the personal representatives of the presidents of Ecuador and Peru. The government of Bolivia would join later in 1967.
The Declaration of Bogotб, which is considered as the cornerstone of CAF and the Andean Group, approved an immediate action program for the Andean countries and Chile for the application of economic integration measures and policy coordination among participating countries in trade, industry, finance and technical cooperation areas. A Joint Commission was conformed to address these issues, and a proposal was made to set up a Development Corporation.
Start of Operations
In 1967, the Joint Commission mapped out CAF basic principles, and on February 7, 1968 the member countries governments signed its Establishing Agreement in San Carlos Palace, Bogotб. The Corporation was conceived as a multipurpose bank and agency for promoting Andean development and integration.
Two years later on June 8, 1970, after opening its headquarters in Caracas, Venezuela, CAF formally began operations. The futurist vision of the framers of the Agreement has given the Corporation the flexibility needed to adapt to changes in regional and global environments, and to keep internal management in step with the growth of business.
The Cartagena Agreement, which was signed in May 1969 one year after CAF Agreement Establishing, created the political framework for the Andean subregional group and proposed the adoption of a joint economic, social and trade development model for countries with similar characteristics and willing to obtain the benefits which, according to the regional integration scheme at that time (LAFTA - Latin American Free Trade Association), tended to be reserved for the larger nations. The Agreement adopted common strategies for industrial, energy, and agricultural development, as well as research, technology transfer, capital investment, construction of physical infrastructure, and movement of persons, among others.
The First Projects
CAF began operations with a subscribed capital of $25 million, payable in five years, and an authorized capital of $100 million. By June 30, 2002, the authorized capital had risen to $5 billion, of which $2.28 billion had been subscribed.
Operations in favor of the shareholder countries followed a similar upward trend. In its first 11 and a half years (June 8, 1970 to December 31, 1981), CAF approved operations totaling $619 million, an annual average of $52 million; in the five-year period (1995-1999), approvals totaled US$12.33 billion.
In 1971, Bolivia and Ecuador became the first countries to receive loans for the execution of projects: a rice storage network ($1.3 million) and a fisheries complex for catching and freezing tropical tuna ($0.5 million). However, the first loan that reflected the Corporation's integrationist philosophy came a year later when $3 million were approved for a project in Venezuela to build a bridge over the Limуn River in Zulia state to facilitate land communications with Colombia.
Increased opening to Latin America
The project financing and investment policies, and strategic guidelines followed by CAF over the years have broadened its fields of action and consolidated its role as the financial arm of the Andean integration process, and as a key factor in the economic development of its shareholder countries. The scale and scope of its operations have expanded considerably to include not only operations related to integration and economic growth, but also knowledge and technology transfer, competitiveness, governance, democracy, reaffirmation of ethical values, modernization of the State, decentralization, strengthening of financial systems, and privatization.
The decision to sell its shares to other members in Latin America and the Caribbean early in 1990 was a landmark that expanded the Corporation’s integrationist mission and operating base beyond the Andean region. At present, in addition to the five countries of the Andean region: Bolivia, Colombia, Ecuador, Peru and Venezuela, the members are:
Argentina, Brazil, Chile, Costa Rica, Dominican Republic, Jamaica, Mexico, Panama, Paraguay, Spain, Trinidad & Tobago, and Uruguay, as well as 14 private banks from the region. |
|
|
|
|
|
|
|
 |
|
 |
|
|
