Andean Advisory Council will analyze macroeconomic convergence

Lima, June 7. The Advisory Council of Treasury or Finance Ministers, Central Banks, and Economic Planning Agencies of the Andean Community will analyze macroeconomic convergence, strengthening of the national financial systems, and harmonization of indirect taxes of the countries of the subregion.

On Thursday June 8th starting at 3PM, the fourth meeting of the Advisory Council will be held at the General Secretariat of the Andean Community, as a prelude to the XII Andean Presidental Summit, which convenes on June 9th and 10th in Lima.

The objective of this meeting is to adopt measures that create conditions which will advance the establishment of the Andean Common Market. The conclusions will be presented at the Summit.

The preliminary agenda includes presentations by each of the Andean countries concerning the objectives, macroeconomic aims, and main instruments of their economic policy for the year 2000, and a presentation by the General Secretariat of the Andean Community with respect to progress in the Advisory Council's work program.

Presentations by the Latin American Reserve Fund, concerning the process of harmonization of macroeconomic policy, and by the Andean Development Corporation, with respect to the strengthening of the banking sector, have also been scheduled.

At the meeting Venezuela will be represented by its Minister of Finance, José Alejandro Rojas, the President of the Central Bank, Diego Luis Castellanos, and the Minister of Planning and Development, Jorge Giordani. The Minister of Economics and Finance, Efraín Goldemberg, and the Director of Economic Studies of the Central Bank of Reserves, Renzo Rossini, will represent Peru.

Ecuador will be represented by the President of the Central Bank, José Luis Ycaza, and the Subdirector of Odeplan, María Cecilia Paredes. Colombia will be represented by the Technical Vice Minister of the Ministry of the Treasury, Carlos Felipe Jaramillo, and the Acting Director of the Bank of the Republic, Gerardo Hernández. The Director of the Central Bank of Bolivia, Armando Méndez, and the Executive Director of UDAPE of the Ministry of the Treasury, Rodney Pereyra, will be attending on behalf of Bolivia.

Between 1998 and 1999, the Advisory Council held three meetings in which it adopted agreements to improve the mechanisms for supervison and control of the financial system, continue with the modernization of the customs administrations, and strengthen the Subregional System of Statistics Information, among others.

During the last meeting held in May of 1999, the Andean officials agreed "to aim for inflation that is less than ten percent annually and to maintain it below said level" and "to continue working on the definition of the convergence criteria with respect to macroeconomic policies, especially in the areas of monetary, foreign exchange, and tax policy and with respect to the fiscal deficit."

During this gathering, they recognized that the "establishment of the Common Market is an immediate task for the Andean intergration" and that its consolidation will allow an increase in the efficiency of subregional production, generate new opportunities for investment and employment, give more stability to the national economies and create more solid conditions to enhance the international competitiveness of the private sector and reinforce their export capacity to the world market."