CAF Takes Out Local-currency Loan

The Andean Development Corporation (CAF) has taken out a local-currency bank loan, the first time it has arranged such a credit with a Latin American bank. The soles-denominated loan, worth $15.5 million and taken out with Peru’s BBVA Banco Continental, is for the purpose of offering Peruvian micro-financial institutions a new source of local-currency financing. CAF usually raises financing by issuing securities or via a foreign-currency bank loan from an international bank.