CAF will seek to expand $2,000 MM in capital

The Bank's development of Latin America (CAF), formerly known as the Andean Development Corporation, will seek to expand its capital between US$ 1,000 and $2,000 million, as a way of having greater availability for the financing of its members. The Ministers of the countries will take this proposal for a special capital increase between 2013, 2014 and 2015 to be better prepared.

The measure was announced here by the President of CAF, Enrique García, to participate as a guest to meet LISTÍN DIARIO on globalization, along with Felipe Pagés, President of Pagés BBDO, S.A., which explained the scope of the innovators of America 2011 Awards, to be held this evening at the Central Bank Auditorium.

García pointed out that it suggest President Leonel Fernandez to seek approval of an increase in the participation of Dr in the CAF, so that the country may achieve a greater amount of resources of the u000aAgency, and go from being not founding member to full member, because currently there is a limit to support country. García said that Dr has been on the CAF $60 million, and not left plenty of room, but if you put $150 million in the long term access to more funds. He recalled that CAF has no more requirements than those relating to projects, and does not require conditionalities. The CAF was born as a Bank of Andean countries, with five members, now has 18 and 20 years ago paid an average of $400 million each year and now provides $10,000 million. Garcia explained that 97% of the properties of the CAF is in 16 countries of the Spain and Portugal have a 4%.

Region
CAF President talked about the great inequality in the region, but despite that Latin America has had an interesting economic growth, including the behavior of the Dominican economy which has been above the average u000aregional.

García stressed, that such great Latin America economic growth despite evidence significant lags, specifically by the volatility and its links to factors external. cited as another great weakness, the fact that investment in the region is the half of which are Asian countries. On average, said, the region spends between 20% and 21% of GDP, "and that is insufficient for sustained growth".

said that productivity has improved, but compared with other countries remains low. "One of the great dramas of Latin America is that our education is not keeping with the 21st century", is not producing what is needed.

Optimistic with the region
Enrique Garcia stated that countries which have been successful are those that give quality to certain fundamentals. He believes that education is the key and said to be optimistic because the good news is that the u000aLatin America is better prepared than before, it has high levels of reserves and there are no problems of indebtedness. Furthermore, noted that us has more chance to end the crisis, since the quarter indicators are good. He noted that 45 per cent of the loans of the CAF will energy and 25% to the social sector. 70% Of the credit is the public sector and 30 per cent with private indicated.

Income of RD
Dominican Republic joined the CAF, in a special not founding countries scheme, in the year 2004.

The President of the CAF expressed an interest that the country will become a full member, as they have done in the past two years, Argentina, Brazil, Uruguay, Paraguay and Panama, because change possibility.

"I.e., with the participation has Dominican there is a limit on what we can support them, and then to see if in the remainder of the management of the President Leonel Fernández is achievable", u000anoted.

In addition, he raised the possibility of CAF install an Office here.

The CAF President stressed that a commitment to increase capital, RD goes to the category of partner.

In the category Dominican Republic is today is the same that was Brazil, Argentina, Urguay currently are Costa Rica, Trinidad and Tobago and Jamaica and with the contributions that make they can access resources of CAF in a portfolio that is segmented depending on whether they are national, up to four projects twice and if they are in integration with other countries may be up to eight times more.

Garcia stressed that input from CAF have a limit and that has made RD, patrimonial increase is $60 million, and "we see that the space with which we have funded to date, they have much".

The country would contribute half of the contribution of countries such as Bolivia, which is US$ 300 million, said. He stated his u000ainterest in convincing President Fernández thereon.

Argued that why not made more things here, citing among financing in general as the Habitat Agenda, infrastructure works in what is the Government and private, as the Atlantic Boulevard corridor and lines of credit.

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