Enrique Garcia, president and CEO of the Andean Development Corporation (CAF), and Isabel Marti­n Castell vice-president of the European Investment Bank (EIB), have signed a financing agreement for €40mn to be disbursed in US dollars. The loan will be used to finance and refinance investment projects with European participation in CAF shareholder countries.

This is the second loan that the Andean development bank has received from EIB since a €40mn loan approved in October 1997. With this second operation, EIB confirms its support for the mission of CAF, strengthening its role as the main multilateral source of external financing for the countries of the Andean Community.

Garcia says that the operation reflected the role that CAF has been playing in assisting its shareholder countries, and fulfilling its catalytic role of attracting sources of financing on favorable conditions for the region, as well as stimulating a set of actions to define a renewed development agenda to promote efficient and equitable participation in the global economy and reduce levels of poverty and inequality among our peoples.

According to the agreement, the potential projects for financing are in the areas of industry, agroindustry, infrastructure, tourism and related services. The loan has a maximum term of 15 years with a grace period of four years.

The European Investment Bank is the financial institution of the European Union whose mission is to contribute to integration, balanced development, and the economic and social cohesion of its member countries. Outside the EU, the EIB applies the financial components of the agreements signed in the framework of European development aid and cooperation. The EIB also supports viable development in Mediterranean countries, Africa, the Caribbean and Pacific, as well as projects in Latin America and Asia.