Argentina announces full membership

(Special, August 30, 2007).- Following the meeting held in the Government House between Argentine President Nestor Kirchner accompanied by the ministers of Economy and Production, Miguel Peirano, and Planning, Julio de Vido, with CAF President & CEO Enrique Garcia, Minister Peirano announced his government’s decision to become a full member of CAF. The new capital contribution agreed will be US$543 million which, added to the US$100 million subscribed previously, brings Argentine participation to a total of US$643 million. Callable capital for a total of US$126 million will also be established.

"This decision is a milestone in the institutional life of the Corporation. Argentina will be the first country to become a full member under the recent amendment to the CAF Establishing Agreement which permits Latin American and Caribbean countries that are not members of the Andean Community to accede to this category on conditions similar to those of the founding countries," Garcia said.

Full membership for Argentina will expand CAF’s financing allocation in favor of this country, making possible new approvals for substantial amounts for economic and social infrastructure projects, as well as support for micro-, small- and medium-sized enterprises in public and private sectors. It will also give an important boost to the regional integration process.

During the meeting in Casa Rosada, a US$300-million loan agreement was signed to partially finance the Rincón Santa María-Rodríguez Electricity Interconnection Project, to be executed by the Argentine Secretariat of Energy of the Ministry of Federal Planning, Public Investment and Services.

This project is the seventh operation that the multilateral financial organization has approved for Argentina. In the last three years, CAF has approved loans for investment projects in favor of this South American nation for some US$1.30 billion, especially Road Integration Corridors Program, Phase I (US$150 million); La Picasa Rail Viaduct and Sector Strengthening (US$35 million); Rehabilitation and Paving of El Pehuenche International Pass (US$80 million); Comahue-Cuyo Electricity Interconnection (US$200 million); Argentina-Paraguay Integration Road Works which are part of the Yaciretá Termination Plan (US$110 million); Expansion of Energy Transport Capacity in Buenos Aires Province (US$45 million); and now the US$300 million loan signed during the meeting.