• by IPS Correspondents (caracas)
• Thursday, December 01, 1994
• Inter Press Service

CARACAS, Dic 01 (IPS) - Fifteen Latin American and Caribbean financial institutions agreed to create a permanent forum in support of regional trade and integration, at a conference held this week in Venezuela.

The forum will gather and distribute information on financing for integration projects and new funding alternatives for intraregional trade. It will also assist regional financial institutions in obtaining greater resources.

A "manual" will be produced for those involved in investment and trade in the region, including information on the flow of capital, especially investments, within the continent.

As an example, the Latin American Economic System (SELA) - which hosted the conference in Venezuela - stated that this information would allow "Argentine producers to learn how to finance exportation of their products to Central America."

The Inter-American Development Bank will gather information from state, multilateral and private bodies that finance Latin American trade and integration, presenting it at the periodical meetings of the forum, to begin in 1995.

Members of the forum include the Central American Economic Integration Bank, the Caribbean Development Bank, the Latin American Export Bank, the Andean Development Corporation and the Latin American Reserve Fund.

The Inter-American Development Bank, the Latin American Integration Association (ALADI) and SELA itself will also take part, among others.

During three days of talks, representatives of the different institutions discussed the boom of trade within the subregions over the past five years, as well as an ongoing need for investment that demands new "financial engineering."

Andean Development Corporation President Enrique Garcia pointed out the insufficiency of traditional financing, and the need to open the region to international captial markets in order to attract investment.

The participants concluded that the newly created forum should "establish mechanisms of technical cooperation" between the member organisations "to facilitate information interchanges and promote joint projects."

It will also support Latin American and Caribbean businesses in international bidding, and promote the Spanish government's initiative for new credit guarantees for exports from the region.

In addition, the group recommended a study the feasability of creating a fund to promote exportation and a firm to classify risks in the region.

© Inter Press Service (2014) — All Rights Reserved. Original source: Inter Press Service

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