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The Andean Development Corporation (CAF) has approved operations worth US$1.01bn to benefit Bolivia, Brazil, Colombia and Ecuador, and strengthen the banking system in the region.
For Bolivia, US$50mn was approved to finance the project for silver, zinc and lead production in the San Cristbal Mine, which is considered one of the largest silver mines in the world. The executing company is Minera San Cristbal, a subsidiary of the US Apex Silver Mines. This project consists of an open cast mine with proven and probable reserves of 229mn tonnes of mineral containing 450mn ounces of silver, 3.6mn tonnes of zinc and 1.35mn tonnes of lead.
For Brazil, US$100mn was approved to partially finance the investment plan of the utility Centrais Eltricas Brasileiras (Eletrobrs) for generation and transmission assets, as well as general corporate purposes. The CAF financing is structured as an A/B loan.
As the third beneficiary country, Colombia received US$300mn to support the Constitutional Pension Reform, whose executing body is the mMinistry of finance and public credit. With the execution of this programme, Colombia will continue with the agenda of actions to guarantee regularisation of the fiscal impact derived from public-sector pension obligations by means of a satisfactory transition between the social security regimes and the pension revision recognized in the public sector prior to the entry into force of Law 100 of 1993. A revolving partial credit guarantee for US$150mn was also approved to support the country’s access to syndicated loans from international commercial banks.
For Ecuador CAF approved a financial support facility in favour of the Social Investment Assurance Program (Praise) for US$100mn, which will form part of the national strategy for improving the quality of life of Ecuadorians in the framework of the Millennium Development Goals. The programme favors compliance with the budgetary appropriation and quality of social spending in the areas mentioned by means of optimising the execution of priority social programmes, which will generate significant positive social and environmental impact in the country.
Finally, an expansion of US$310mn was approved for the line of credit for banks with a solid and proven relation with the corporation. The new credit facility will help these first class banks of great importance in their countries to adapt to current market needs.