Argentina formalizes full membership of CAF

(Caracas, October 5, 2007).- In a solemn ceremony in the Casa Rosada Presidential Palace in the presence of President Néstor Kirchner, Cabinet Chief Alberto Fernández and other high government authorities, CAF President & CEO Enrique García and Argentine Minister of Economy and Production Miguel Peirano signed an agreement to make Argentina a full member of the multilateral financial organization.

The ceremony formalizes the subscription to CAF ordinary capital shares for a total of US$543 million which, added to its current holding of US$100 million, will raise the capital subscribed by Argentina to US$643 million. It was also agreed that the country would contribute US$126 million to the Corporation’s guarantee capital.

President Kirchner, who signed the agreement as witness of honor, emphasized the solidarity and excellent relations with CAF, particularly during the difficult times which the South American nation has experienced. The head of state emphasized the Corporation’s Latin American character, saying that full membership for Argentina confirmed the political decision of the government to strengthen institutions that respond to the development agendas originating in the region and the Latin American integration process.

Enrique García and Miguel Peirano both emphasized the importance of the signing, which will expand spaces of financing for the public and private sectors in Argentina in priority areas for the country's economic and social development and for regional integration, as well as increasing Argentine presence in the institution.

In this respect, the CAF head said that in the last three years loans had been approved for investment projects in favor of this South American nation for around US$1.30 billion, especially the Rincón Santa María-Rodríguez Electricity Connection Project (US$300 million); Integration Road Corridors Program Phase I (US$150 million); La Picasa Railway Viaduct and Sector Strengthening (US$35 million); Rehabilitation and Paving of the 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); and Expansion of Energy Transport Capacity in Buenos Aires province (US$45 million), among others.