This is as a result of a cabinet decision on February 9, 2012 that the Minister of Finance implement the Agreement between the Government and the Andean Development Bank for the subscription of common capital and expanded country membership in the institution.
The signing of the loan agreement clears the way for a portfolio of local government projects to become eligible for CAF financing. These include projects regarding infrastructure including roads, transportation, telecommunications, power generation and transmission, water and sanitation.
Members of the Trinidad & Tobago delegation witnessed the signing along with top officials of the CAF.
The Prime Minister has said the summit presents the ideal opportunity for Trinidad & Tobago to sign such an Agreement given the theme of this year’s Summit "Connecting the Americas; Partners for Prosperity."
She stated, “The signing of this Agreement sends a strong message of Trinidad & Tobago’s commitment at the highest political level, to deepening regional integration as well as south-south cooperation in advancing development across Latin America and the Caribbean.”
She stressed that Trinidad and Tobago is poised to take on an increasingly active and leading role in strengthening inter-American relations and in the pursuit of fruitful partnerships.
The CAF is a development bank established in 1970 that currently consists of eighteen countries in Latin America, the Caribbean and Europe, as well as fourteen private banks from the Andean region.
The organization promotes a model of sustainable development through credit operations, grants and technical support, and offers financial structuring to public and private sector projects in Latin America. Based in Caracas, Venezuela, CAF has offices in Buenos Aires, La Paz, Brasilia, Bogota, Quito, Madrid, Panama City, Lima and Montevideo.
A CAF Mission, headed by its President L. Enrique Garci, is scheduled to visit Port of Spain from May 16-18 2012 to further explore the possibilities arising from Trinidad and Tobago becoming Special member Country. The signing of the Agreement will provide added impetus to these discussions.
Editorial notes about CAF loans:
- Loan agreements are CAF’s main financial tool and can be short term (1 year), medium term (l-5 years) and long term (over five years). There are different types of loans: commercial loans and working capital loans, for projects and limited guarantee loans
- CAF may also finance sovereign risk and non-sovereign risk operations. Loans can be granted in all stages of project implementation within the context of a comprehensive credit, and for the promotion of exports and working capital to companies or financial institutions
- In the area of industry, CAF invests in projects to expand and modernize production capacity and business integration of its shareholder countries in regional and global markets
- Official Website of the Corporación Andina de Fomento (CAF): www.caf.com
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