USD 30 million for Argentine populations affected by activity of the Puyehue volcano

(Buenos Aires, August 9, 2012). Activity in the Puyehue-Cordón Caulle Volcanic Complex that occurred in 2011 resulted in physical, natural, and social losses in the populations of Río Negro and Neuquén. Because of this, the Argentine Republic is implementing an Assistance Program for the Populations Affected by the eruption, which is supported by CAF –Latin American development bank- with funds amounting to USD 30 million.

The loan contract was signed by Enrique García, the bank’s president and CEO, and Hernán Lorenzino, Argentina’s Minister of the Economy and Public Finance.

García stated that CAF offers its shareholder countries comprehensive support “for dealing with and preventing emergencies via financing facilities and non-reimbursable resources, with the purpose of minimizing the impact that natural disasters have on the lives of their inhabitants and the economies of their countries.”

“The Argentine Government –stated Lorenzino- seeks to continue contributing to the repair and recovery of the areas affected by the Puyehue volcanic phenomenon via the international financing of infrastructure works.” “International agencies have to finance infrastructure, long-term projects, and, in particular, social infrastructure. In this regard, CAF is an example that should be followed,” stressed Argentina’s Minister of the Economy and Public Finance.

The program in question seeks to alleviate the effects that the eruptions of the Puyehue volcano has had on the provinces of Río Negro and Neuquén, which started on June 4, 2011. With these funds, it will be possible to attend to the homeless as well as to restore crucial services affected as a consequence of the losses suffered.

The loan comes from the fund set up by CAF to deal with emergency situations in view of the worrying increase in the number of disasters associated with natural phenomena and the social, environmental, and economic impacts that they generate in the region.