Deepening relations with Argentina

(Caracas, July 25, 2006).- During a visit to Argentina by President & CEO of the Andean Development Corporation Enrique García, a US$35-million line of credit agreement was signed with the Investment and Foreign Trade Bank (BICE) in the Casa Rosada, and the CAF Board Resolution approving the US$80-million loan for El Pehuenche Pass was presented to Argentine President Néstor Kirchner.

The ceremony was attended by the minister of Federal Planning, Public Investment and Services, Julio De Vido; the Minister of Economy and Production, Felisa Miceli; the president of BICE, Esteban Domina; the secretary of Economic Policy, Oscar Tangelson; and the secretary of Public Works, José López, among other important personalities.

García said that the agreement was a tangible example of the ever closer relations between the Republic of Argentina and CAF. "It strengthens CAF’s catalytic role by offering mechanisms to facilitate the effort that the countries are making in favor of Latin American integration."

On the US$35 million line of credit signed with BICE, García explained that the facility would support foreign trade and working capital, and finance investment in capital goods and projects. CAF’s relation with BICE began in 2003 "as a first step in supporting Argentine foreign trade with the countries of the Andean Community," he added.

US$80 million for strategic border pass A document presented to President Kirchner confirmed the recent approval of an US$80-million loan for the Republic of Argentina, for partial financing of the "Rehabilitation and Paving of El Pehuenche International Pass" project.

García explained, "As part of the South American Regional Infrastructure Integration Initiative (IIRSA), this project will develop the road infrastructure of the strategic trans-Andean pass on the Argentina-Chile border, which is an integral part of the Bio-Oceanic Corridor (IIRSA Mercosur-Chile and South hubs)." The CEO added, "Since the Argentine-Chile border is one of the longest in the world and taking into account that CAF’s mission is to support Latin American integration, operations like this are increasingly important because of their impact on the economic and social development of national and regional areas."

The total cost of the project is estimated at US$149 million. The multilateral bank contribution covers 54%, while the remaining 46% will come from the Argentine government.