Category: Structured Finance

The Andean Development Corporation (CAF) has approved a $180 million loan to Bolivia to finance the construction of a highway connecting Bolivia and Brazil. CAF also approved $72 million to finance an upgrade of the Caracas metro system.

The Andean Development Corporation (CAF) is set to announce a $126 million loan to Ecuador to improve the country’s road network and support the government’s economic program. Ecuador’s newly appointed Economy Minister Magdalena Barreiro is in CAF’s Caracas headquarters today to sign the agreement.

US President George W. Bush signed legislation Tuesday to implement the Central American Free Trade Agreement (CAFTA), capping a 19-month effort by his administration to end most tariffs on the $33 billion in goods traded between the US and Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, and Nicaragua. Legislatures in El Salvador, Guatemala and Honduras have already passed CAFTA, while it is still being debated in Costa Rica, the Dominican Republic and Nicaragua.

The controversial Central American Free Trade Agreement (CAFTA) passed the US House of Representatives early Thursday morning in an extremely close vote of 217-215. The FTA has already passed in the Senate and now moves to the desk of President George W Bush, who has promised to sign it. The bill, which will lower trade barriers between the US, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and the Dominican Republic faced ferocious opposition from the powerful sugar and textile industries and passed with few Democratic votes. Bush argued the FTA would strengthen the economies and governments of Central America and the Dominican Republic, thereby improving the national security of the United States.

The Andean Development Corp. says it will lend Colombia $150 million to partially finance the government’s Regional Highway and Infrastructure Development Plan this year. CAF, a development agency owned by five Andean countries, plans to lend Colombia $900 million this year.

The Andean Development Corporation (known as CAF in its Spanish initials) issued two sets of Samurai bonds worth $184 million. $138 million worth of three-year bonds are set to yield 6.96 percent at par, while $46 million worth of seven-year bonds will yield 15.72 percent. The sale was managed by Mizuho Securities and Nomura Securities. CAF’s principal shareholders are Venezuela, Colombia, Ecuador, Peru and Bolivia.

The Central American Free Trade Agreement (CAFTA) passed 25-16 in the influential Ways and Means Committee in the US congress. The bill now passes to the White House for review before going back to Congress for a final vote. CAFTA has become an explosive political issue in the US with Democratic leaders arguing it will cost jobs and will worsen the country’s already giant current account deficit. President Bush argues it will help US exporters and promises to sign it.

The Bush administration is pushing Congress to pass the US-Central American Free Trade Agreement (CAFTA), arguing the pact is necessary to ensure economic growth, freedom and democracy in Central America. The presidents of the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua were in Washington Wednesday and also encouraged Congressional leaders to ratify the agreement. CAFTA faces stiff resistance from US textile manufacturers and the country’s sugar industry.

US President George W. Bush urged congress to approve a free trade agreement with Central America (known as CAFTA) to help bolster US exports. Central America is the US’s 13th-largest export market, bigger than Russia, India and Indonesia combined, and the US is the biggest buyer of Central American products. Goods worth about $33 billion are expected to be traded between the US and Central America this year.