US$400 million to support Argentina’s development agenda

(Buenos Aires, March 27, 2012).- La Casa Rosada, seat of the Presidency of Argentina, was the venue for signing five Memorandums of Understanding covering total financing of US$400 million from CAF - Latin American development bank – in favor of the country.

Argentine President Cristina Fernández de Kirchner was witness of honor at the signing by Enrique García, CAF president "&" CEO; Hernan Lorenzino, minister of Economy and Public Finance; Julio De Vido, minister of Federal Planning, Public Investment and Services; Norberto Yahuar, minister of Agriculture, Livestock and Fisheries; and Florencio Randazzo, minister of the Interior.

The projects promoted by CAF in Argentina are part of the investment priorities set by the government in key sectors for national development. "The funds approved this time will be used to improve the living conditions of the Argentine people, especially strengthening economic and social integration and social development in the regions and the most neglected social sectors,” García said during the event.

"As an essentially Latin American institution, CAF supports countries’ efforts to raise their average investment rate - the CAF head said - as a way of guaranteeing the sustained expansion of economic activity, a key requirement for converging with the GDP per capita of the industrialized countries and drastically reducing the high levels of inequality that persist in the region."

In the last five years (2007-2011) the Latin American financial institution approved operations in favor of Argentina for US$4.215 billion.

Supporting an integrated development agenda

The agreements signed today allocate US$168 million to National Route 40, US$100 million for the sugar sector, US$65 million for the Program to Develop Education Physical Resources, US$50 million to the Program for Multiple Works in Municipalities, and US$13.6 million for the program for the Integrated Modernization of the National Archive.

The finance (US$168 million) for the Road Development Program Phase II: National Route 40 is especially important because it will benefit both the connectivity of a large part of Argentina, and also enhance regional integration and closer links with Chile.

This Highway Program, promoted by the national government at a total cost of US$240 million, also includes a commitment to strengthen sectors with high growth in recent years such as tourism and agriculture, mining and industry.

The Ministry of Agriculture, Livestock and Fisheries is implementing a program to improve the competitiveness of the sugar industry in northwest Argentina. The initiative has the CAF support in the form of a US$100 million loan whose agreement was also signed today.

The third Memorandum covers a US$65 million loan for financing the Program to Develop Physical Education Resources with the objective of promoting projects for infrastructure, equipment and furniture for public educational institutions in various provinces, to meet existing demand for educational services and improve the coverage and quality of the system.

Another US$50 million goes to the Program for Multiple Works in Municipalities, aiming to improve the quality of life for their inhabitants by financing infrastructure works with a strong social impact.

Lastly, the financial institution granted a US$13.6 million loan for the integrated modernization of the General Archive of the Nation including design and construction of a new building, reconditioning existing facilities, provision of new equipment, and investment in areas of archival management.