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CAF signs deal with Russian development bank, moves ahead with Chile's congress (Regional)
2010-10-19
The Andean Development Corporation (CAF) has signed an MOU with Russian state development and foreign economic affairs bank Vnesheconombank, as CAF also moved ahead in another congressional committee with plans to begin operating in Chile after more than 32 years of absence.

 

The agreement between Vnesheconombank and CAF aims to strengthen and promote long-term cooperation between Russia and CAF member countries and explore "joint working mechanisms," such as co-financing, credit lines and information exchange, CAF said in a statement.

 

The parties intend to explore the possibilities of financing projects jointly in infrastructure, energy, education, environmental protection and promotion of SMEs, Vnesheconombank said in its statement.

 

CHILEAN CONGRESS COMMITTEE GIVES ANOTHER OK

 

In related news, the foreign affairs committee in Chile's upper house has approved CAF's plans to resume operations in the country, a press release from congress reads.

 

While the lower house of congress already gave its assent, the senate finance committee must now evaluate the measure. Once receiving final approval from the congress, CAF will be allowed to operate in the country under the same terms as other multilateral financial organizations.

 

Chile was one of the founding signatories of CAF in 1970, but left CAF's governing body in 1978. It returned as shareholder via two agreements signed in 1992 and 2007, but CAF is not currently authorized to operate in the country in full, the release reads.


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