The Minister of Finance, Luis Caputo, signed this morning together with Luis Carranza, President of the Development Bank of Latin America (CAF, for its acronym in Spanish), six agreements for a total amount of USD 460 million that had recently been approved by the Board of Directors of the international organization.

Within this framework, the Finance Minister said that “CAF contribution evidences its confidence towards Mauricio Macri’s Administration” and he affirmed that “it is important to highlight that the financing will be aimed at the infrastructure works that Argentinians need to improve their life quality”.

This way, the subscription of the financing agreement together with the CAF foresees the execution of the following projects:

– Comprehensive Management of Lujan River Basin Plan
– Water Treatment Plant in La Plata
– Encouragement to Public-Private Investment
– Comprehensive Environment Program
– Belgrano Sur Railway
– Infrastructure Improvement in the Province of Buenos Aires Program

After the event, Caputo accompanied President Mauricio Macri in the meeting he held with Carranza in Casa Rosada, where they announced CAF commitment to finance projects in the country for the next 3 years for USD 2 billion in the public and private sectors, in strategic areas such as education, water and sanitation, transport, logistics and energy. “The projects will have a very positive social and economic impact throughout the national territory”, the President of the CAF said.

At the meeting, Carranza said that in the case of the public sector, around USD 800 million will be allocated in credits for projects of education, environment, and water and sanitation; other USD 700 million in logistics, transport and regional integration; and USD 200 million for energy, in initiatives such as the 3rd stage of Belgrano Sur, the National Program of Massive Transport, the Logistic Connection Santa Fe – Parana, the Electric Project of the Province of Buenos Aires, the Program of Basic Works for Potable Water Aysa stage 3, and the interventions in environment in different “villas” of Buenos Aires, among others.

The Secretary of Financial Services, Leandro Cuccioli; the Undersecretary of Legal and Regulatory Affairs, Eugenio Bruno; and the President of the Argentine Securities and Exchange Commission (CNV, for its acronym in Spanish), Marcos Ayerra, attended today the plenary meeting of the Finance and Budget and Treasury commissions of the House of Representatives and they explained the main guidelines of the Bill.

The law will foster financing for SMEs, the access to housing, the strengthening of the regulator agency and CNV regulations, and the development of more instruments to promote long-term savings.

At the presentation, Leandro Cuccioli talked about the importance of expanding the capital market and highlighted: “Its development is the challenge we have as a country. It is a source of growth because it is the vehicle through which savings meet productive services. It is a channel that must be available for those who need financing”.

The Secretary of Financial Services also remarked the promotion of access to housing and he explained that “with this law we are creating an instrument that will provide the possibility of having a broad and cheap mortgage credit”.

Finally, he talked about the promotion of long-term savings and he said: “Our objective is to give incentives for people to have the necessary instruments for long-term savings”.

In addition, Marcos Ayerra explained the importance of building a strong capital market through legal certainty and a transparent regulation system. “To that end, we add concepts that allow us to have a better regulation and more reaction capacity to be institutionally stronger”, he said.

Finally, Eugenio Bruno talked about the legal and regulatory aspects of the new Productive Financing Regime and he said: “This project constitutes an upgrade of last year’s version due to the fact that it is aimed at improving the SMEs regime”.

The main objectives of the project are to provide the foundation for a strong support to SMEs financing; to promote the capital market at a federal level; to increase the protection to investors; to boost public offerings of shares; to favor the development of the mortgage market and financial inclusion; to create the favorable conditions for the promotion of long-term savings; to strengthen the infrastructure of the capital market; and to improve the independence and supervision capacity of the CNV.

The Minister of Finance, Luis Caputo, and the Head of Development Funds Management Unit at Cassa Depositi e Prestiti (CDP), Stefano Gatti, signed this afternoon the financing agreement for 42 million euros at a 0.2% rate and a 38-year maturity (with a grace period of 4.5 years) that will be aimed at the Argentine Program for Public Health (PROSEPU II).

Caputo said that the agreement is entered into within the context of “a new stage of international insertion and opening of the financial markets that Argentina is experiencing since the beginning of 2016”.

The implementation of PROSEPU II will enable the strengthening of public health performance in 15 high-complexity hospitals through the complete renovation of operating rooms and the incorporation of latest-generation equipment (resonators, ultrasound machines, defibrillators, pacemakers, X-ray equipment) in the Provinces of Buenos Aires, Misiones, Salta, Jujuy and Santiago del Estero. This way, 4,698,747 citizens will be directly benefited and more than 13 million will be indirectly benefited.

The objective of the Program is to achieve Universal Health Coverage (CUS, for its acronym in Spanish), ensuring fair access to sanitation services.
The Chief of Cabinet of the Ministry of Finance, Pablo Quirno; the Undersecretary of International Financial Relations, Martin Soto; and the National Director of Projects with Bilateral External Financing, Matias Mana, also attended the execution of the agreement.

Likewise, Teresa Castaldo, Ambassador of Italy in Argentina; Francesco Cappechi, Commercial Counselor of the Embassy of Italy; the former Minister of Health of Argentina, Jorge Lemus; Maria Cecilia Loccisano, Undersecretary of Administrative Coordination of the Ministry of Health; Guido Donaire, coordinator of PROSEPU II; and Maisa Havela, Coordinator of Strategic Planning of the Ministry of Health, also participated in the event.

Cassa Depositi e Prestiti S.p.A. (CDP) is an institution that promotes and supports Italian growth. It is aimed at promoting infrastructure development, supporting investment projects, promoting the internationalization process of companies and fostering international cooperation. Its areas of interest are: energy, transport, infrastructure and development of projects with high social impact.

The European Investment Bank (EIB) will grant USD 71 million to the Argentine Republic to finance Argentine SMEs investment, offering them the liquidity they need to continue growing and generating employment in the country. The Vice President of the EIB for Latin America, Roman Escolano, and the Minister of Finance of the Argentine Republic, Luis Caputo, signed today in Buenos Aires the USD 71-million loan by which the European Union Bank will support Argentine enterprises through the Bank of Investment and Foreign Trade (BICE, for its acronym in Spanish). This Argentine institution will be managing these funds, which will have the contribution of the BICE with additional USD 71 million.

The project signed today is the first agreement between the EIB and the Argentine public sector as from 1996. The EU bank started operating in Argentina in 1994, and since then it has singed 13 agreements, both in the private and the public sector, with the objective of supporting the economic growth of the country. The loan granted will be aimed at the productivity of Argentine SMEs, which are the engine of the country’s economy and which may be benefitted from the advantages of the EIB loan as regards both term and interest rates.

The Vice President of the EIB, Roman Escolano, highlighted today “the positive impact of this loan to contribute to the economic development of the private sector in Argentina, granting liquidity to the productive sectors. The agreement signed today evidences the cooperation commitment of the European Union with Argentina and our strong support to its economic reforms”.

The Minister of Finance, Luis Caputo, highlighted EIB’s support to extend credit for SMEs. “One of the milestones of the Government’s Administration and of this Ministry is to recover the world’s confidence in Argentina. Thanks to this agreement, we can obtain good financial conditions for SMEs and entrepreneurs”.

“The loan agreed with the EIB allows us to fulfill the mission we have as a development bank, promoting financial inclusion and extending the terms of the credits with which enterprises throughout the country are financed. The money obtained will be used in direct loans or through our second floor channel and it will be aimed at the financing of productive investment, exports and renewable energy projects that promote sustainable growth”, said the President of the BICE, Pablo Garcia.

The EIB loan signed today with the Argentine Republic is covered by the guarantees agreement of the EU and it is granted under the EU mandate loans for Latin America 2014-2020.

The visit of the Vice President of the EIB to Argentina is part of his tour in the region. He has signed different agreements to promote economic, social and environmental development.

EIB in Latin America

The European Union is the main partner of economic development of Latin America and the EIB, as EU Bank, supports the cooperation between both regions financing the projects that contribute to achieve the objectives of the European foreign policy: economic development, social and environmental infrastructure, development of the private sector and fight against climate change.

The EIB provides financial assistance for projects in Latin America fostering long-term investment in favorable conditions and the necessary technical support to make sure said projects have a positive social, economic and environmental impact.

Since the EIB started its activity in Latin America, in 1993, it has granted financing solutions for more than 100 projects in 14 countries of the region, with a total investment of 7 billion Euros. During the last years, the Bank of the EU has granted 900 million Euros to implement different projects in Argentina, Bolivia, Brazil, Ecuador, Mexico, Panama and Paraguay.

General Information

The European Investment Bank (EIB) is the long-term financial institution of the European Union which shareholders are its member countries. The EIB provides long-term financing for viable investment projects aimed at the achievement of the EU policy objectives.