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  • Germany’s KfW has signed a loan agreement with multilateral development bank Corporaci n Andina de Fomento (CAF). The bank will obtain a promotional loan from KfW for the sum of US$100mn. The funds will be used to refinance infrastructure loans which CAF extends to private and public investors. This operation marks the expansion of KfW’s activities with loans from capital market funds under Germany’s development cooperation with Latin America.

    The loan is intended to refinance infrastructure measures in the sectors water/sanitation, energy, telecommunications and transport. The loan to CAF will benefit the five Andean countries of Peru, Bolivia, Ecuador, Colombia and Venezuela.

    “The creation of new and the rehabilitation of existing infrastructure will make an important contribution to regional integration, to enhancing economic growth and, ultimately, to improving the living conditions of the local population,” says Wolfgang Kroh, member of KfW’s board of managing directors.

    For over 40 years KfW has been promoting investments and structural reforms in developing countries from budget funds on behalf of the German federal government. The bank also provides additional capital market funds for development projects in developing countries on its own risk.