The Minister of Finance, Luis Caputo, signed three financing agreements for 39.5 million dollars during a meeting with the Executive President of the Financial Fund for the Development of La Plata Basin (FONPLATA), Juan Notaro Fraga. The meeting was held within the framework of the Inter-American Development Bank (IDB) Governors Annual Meeting to be held in the City of Asuncion, Paraguay.
After the meeting, Caputo highlighted “FONPLATA’s flexibility to adapt to times and necessities of the investment projects that Argentina needs for a sustainable growth”. Notaro said: “We are aware of the challenges faced by the Provinces of Argentina with the consequences of “El Niño” and other weather events. With these loans we are ratifying our commitment with the most vulnerable population of Argentina, in particular those affected by climate change”.
The loan agreements signed today had already been approved in 2016, to which we have to add 66,400 dollars as Non-refundable Technical Cooperation for the “Housing Expenditure Survey”.
The financing will be aimed at the “Program for the Institutional Strengthening of Territorial Planning”, for an amount of 12 million dollars; 7.5 million dollars shall be contributed to the “Project of Modernization of the Government – Digital Country Program”; and 20 million dollars to the “Emergency Program to Mitigate El Niño Effects in Argentina”. These initiatives are aimed at strengthening public investment planning, promoting digital inclusion and assisting flood emergencies.
During the meeting between Caputo and Notaro Fraga, a memorandum of understanding between Argentina and FONPLATA was signed, aimed at making progress in addressing the rest of the projects approved last year, which amount to a total of 179 million dollars.
The programs included in this document are the following: “Development of Border Issues”, “Comprehensive Improvement for Border Settlements”, “Support to the Development of the Agro-industrial Sector”, “Access to Financing in the North of Argentina” and “Development of Drinking Water and Sanitation Services in Mesopotamia”.
With loans granted to Argentina for a total amount of 220 million dollars, FONPLATA supports the country in the improvement of border settlements, control of Chagas disease and rural infrastructure. FONPLATA has also cooperated in areas such as modernization of the Government, encourage to SMEs and railway integration with Bolivia. Achievements made during 2016 show the commitment of said organization with the country and its central role in the promotion of policies aimed at the regional integration among the countries of La Plata Basin.
FONPLATA is a multilateral organization comprised of Argentina, Bolivia, Brazil, Paraguay and Uruguay, which main goal is to support integration among member countries to achieve an inclusive development through credit operations and non-refundable resources of the public sector.