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Argentina Government Invests $190 Million In Andean Development Corp

BUENOS AIRES -(Dow Jones)- Argentina's government has invested $190 million in the Andean Development Corporation, or CAF, the agency said Wednesday in a statement.

Argentina joined Venezuela-based CAF as a shareholder in 2001, and made its first investment of $543 million in October 2007, at the same time as Brazil, Panama, Paraguay and Uruguay.

CAF has provided a useful return to Argentina, in the form of relatively cheap loans for major projects. Since 2001, CAF has authorized a total of $1.99 billion in loans to Argentina, mainly for infrastructure and the financial system, CAF said.

CAF President Enrique Garcia said the new capital reflects Argentina's commitment to the organization. That's a useful marker for the CAF, given that Argentina has been one of the most vocal supporters of a rival regional development bank proposed by Venezuela, the Bank of the South.

"It ratifies the will manifested by shareholder countries of the Corporation to build up its shareholder capital and thereby deepening its activities in the region," Garcia said in the statement.

-By Matthew Cowley, Dow Jones Newswires; +54 11 4103 6740; matthew.cowley@ dowjones.com

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