An agreement on mutual cooperation in the form of a Memorandum of Understanding between Export Guarantee and Insurance Corporation (EGAP) and Corporación Andina de Fomento (CAF) was signed in Prague on Monday, 27 October 2008.
CAF is a multinational financial institution having as its shareholders Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, Jamaica, Mexico, Panama, Paraguay, Peru, Trinidad and Tobago, Uruguay, Venezuela and Spain, and 15 private banks in Latin American region. With the basic capital exceeding USD4 billion, it offers a wide spectrum of financial services both to private and public sectors in member countries. It has at present in its portfolio credits in the approximate amount of USD10 billion and it approves annually new credits in the extent of USD 4 - 5 billion. It often co-finances projects with other international institutions and commercial banks and it contributes capital to operations of other banks in the region. Its activity is highly valued by international rating agencies. Standard & Poor's gave CAF the rating "A+".
Close cooperation of EGAP and CAF opens e.g. possibility to use a combination of a credit from CAF and a credit from the bank of the Czech exporter insured by EGAP for financing of Czech exports to Latin American countries. Already at this stage, CAF is interested in participation in co-financing of the project of the Czech company Dia Latina for construction of a unit for production of bio-ethanol in the northern part of Peru in the total worth of around USD180 million. In terms of branches, CAF is primarily focusing on infrastructural projects with integration character as construction of roadways, electricity distribution networks, and water management as well as on environment protection projects, reduction of emissions, biodiversity support and prevention of natural disasters, and on projects supporting competitiveness of Latin American countries on international markets.
The Agreement on Cooperation was signed on behalf of EGAP by Mr. Pavol Parízek, the Chairman of the Board of Directors and Managing Director, on behalf of CAF by its Executive President Mr. Enrique Garcia who then met representatives of Czech entrepreneurial and bank circles on a seminar organised by EGAP. In his presentation (4 326 kB) he described in detail CAF as one of the most important Latin American financial institutions which is highly interested in support of Czech export of goods, services and investments to the Latin American countries. He emphasized facilities of CAF e.g. in financing of local costs and offered to Czech exporters and their banks active and concrete assistance in realisation of their projects supported by EGAP's insurance.
The new framework of cooperation with a prominent Latin American financial institution which has been arranged by EGAP's agreement with CAF is even more important because it creates room for return of the Czech exporters to formerly traditional destinations in the Latin American countries in the new situation of commencing recession on developed markets.