The Corporación Andina de Fomento - Latin American development bank was granted an exemption by the Commodity Futures Trading Commission from its mandated central clearing of swaps trades. The CFTC said in a no-action lette that CAF qualified for an end-user exemption from its swaps requirements, based on its status as an international financial institution. CAF is owned by 18 Latin American and Caribbean governments and 14 private banks, and is a leading international lender for infrastructure projects in the region. The CFTC said in its no-action letter that CAF enters into interst-rate swaps and currency swaps to hedge and reduce exposure to these risks involved in its loans, which are made to parties generally unable to obtain commercial financing.
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