November 27, 2017

The Financial Inclusion Council met this morning to analyze, together with the authorities of Nacion Servicios, the strategy and evolution of PIM, the electronic wallet launched by Banco Nacion.

In addition to the officials of the Ministry of Finance, the following officials also participated in the meeting: the Chief of Cabinet of the Ministry of Treasury, Ariel Sigal; the Vice President of the Argentine Central Bank, Lucas Llach; the Director of the Argentine Central Bank, Horacio Liendo; the President of the Argentine Investment and Foreign-Trade Bank, Pablo Garcia; the Secretary of Social Economy of the Ministry of Social Development, Matias Kelly; the Vice President of Nacion Servicios, Alejandro Nigro; the Director of Nacion Servicios, Algejandro Cavallero; the CEO of Nacion Seguros, Leonardo Coca; and the Manager of Dinero Movil, Javier Buitrago.

PIM is a financial inclusion tool that can be used with a mobile phone, without the need of a credit card or a bank account. This tool to buy and to send cash already has 170,000 users and more than 20,000 participating stores.

The Financial Inclusion Council has to coordinate the design of short, medium and long-term public policies aimed at the promotion of the universal access to bank and financial services.

The Undersecretary of International Financial Relations, Martin Soto, and representatives of the Export-Import Bank of China signed today in Beijing a 15-year financing agreement for USD 331.5 million at a preferential rate of 3% (with a 5-year grace period) aimed at the construction of “Parque Fotovoltaico Cauchari Solar I, II and III” solar parks in the Province of Jujuy.

This agreement is entered into within the framework of the Cooperation Agreement for Economic and Investment Affairs between the Argentine Republic and the People’s Republic of China approved by Argentine Law No. 27122 and contemplated in the 2017-2021 China-Argentina Comprehensive Five-year Project for Cooperation in Infrastructure. It is the first project financed with a concessionary line of credit granted by the Export-Import Bank of China, bank appointed by the Government of the People’s Republic of China to grant said credits.

The Project will enable to increase the availability and access to renewable energy sources to the Argentine Interconnection System (SADI, for its acronym in Spanish), through the construction of three solar parks of 100 MW each. Likewise, it will foster economic development with a positive environmental impact, creating jobs for the inhabitants of the region and the entire Province.

The project will take place in the region of La Puna, Cauchari, District of Susques, Province of Jujuy, at 278 km from the City of San Salvador de Jujuy, a strategic location from the solar resource point of view.

The Government of the Province of Jujuy, in line with the national energy policy and taking into account the objectives of the Presidency of the Nation, has undertaken the challenge of developing a solar park that contributes to the national energy development, to the reduction of generation costs, and to the moderation of climate change taking advantage of the excellent available solar energy.

In this sense, considering that around 300,000 households will be provided with the plant’s energy, it can be estimated that 1,200,000 people will be benefited by the electricity generated. In addition, this project will foster the region’s economy, creating approximately 600 jobs and during its operation around 100 jobs.

During his visit to Beijing, Soto also met with representatives of the Concessional Exim Bank to work on the project to improve San Martin Railway and with authorities of the Commercial Exim Bank to make progress on the “Río Subterráneo Sur y Estación Elevadora – Tramo II” Project. Likewise, he met with representatives of the Industrial and Commercial Bank of China (ICBC) to work on the Project of Nuclear Plants IV and VI and with authorities of SINOSURE to improve the financial conditions and risk premium for future projects.

Soto’s agenda in China also included a meeting with representatives of the company Gezhouba to analyze hydroelectric projects of Santa Cruz River, Condor Cliff Stage II. In order to make progress on the first project, this Friday he will be working with authorities of the China Development Bank, with whom he will also discuss the agenda of the Financing Agreement of the Project to improve Belgrano Cargas Railway and the Project to acquire rolling stock for Electric Roca Railway. Finally, Soto will analyze the Project “Termoeléctrica Manuel Belgrano II” together with representatives of the China National Technical Import & Export Corporation.

The Chief of Cabinet of the Ministry of Finance, Pablo Quirno, received today the President of the International Fund for Agricultural Development (IFAD), Gilbert Houngbo, in his first official visit to our country. At the meeting, they talked about the programs currently developed between Argentina and the IFAD and about the potential opportunities of mutual cooperation.

Currently, there are three ongoing projects with a total investment of USD 214.4 million. The IFAD finances USD 95.4 million out of said amount.

The first program is the Program for Rural Development (PRODERI), which objective is to improve the life quality of rural families and to increase their incomes by raising productivity, having access to value chains and the creation of jobs.

In addition, the Program of Economic Insertion of Northern Family Producers (PROCANOR) – which financing agreement was signed in March this year – is aimed at contributing to the insertion of small producers into value chains in beneficial and sustainable conditions in the Provinces of Catamarca, Chaco, Corrientes, Formosa, Jujuy, La Rioja, Misiones, Salta, Santiago del Estero and Tucuman.

Finally, the Program to Develop Goat Chains (PRODECCA), which agreement was entered into in April this year, is aimed at incorporating small goat producers into the market, benefiting 8,000 families in the Provinces of Chaco, Formosa, Neuquen, Mendoza and Santiago del Estero. This way, this initiative promotes the incorporation of vulnerable groups of the region. It will also have an indirect impact on the development of the goat products market.

Since 1988, the IFAD has financed 8 programs and projects of rural development in Argentina for a total amount of USD 372.6 million.

The IFAD is a specialized agency of the United Nations, created in 1978 and with 176 Member States, that finances innovative programs and projects of rural development in developing countries.

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.