Looking for new horizons
As Executive President of FONPLATA, I had to lead its modernization process to turn it into a partner that meets the development needs of our member countries, promptly and professionally.
Text originally published in the monthly column of Juan Notaro in Huff Post.
Along this process, we have managed to expand our financial capacity with two capital increases. Processes have become more efficient, and we have recruited new professional talents. As a consequence, in just six years, we were able to approve more projects than in the previous 35 years of the entity’s history.
For the first time, FONPLATA was rated by global credit rating agencies and was assigned an A2 and A- rating by Moody’s and Standard & Poor’s, respectively. This places us at a higher position than our member countries and allows us to have access to and to provide funds in very favorable conditions.
But the most important part is that, throughout this modernization process, we have been able to stick to FONPLATA’s core values. That is, we have remained an entity that funds development projects in vulnerable, rural or border regions in order to boost the integration among countries or among different regions in one country.
This has allowed us to specialize in small- and medium-sized projects, which are not supported by major multilateral banks or other development agencies in the region. Such projects have direct impact in our target communities with funding amounts ranging from 10 to 70 million dollars.
This means that we have been able to stick to our historic mandate on top of developing a specific mission that meets the current needs of our member countries and complements the work of other development institutions.
Our commitment has remained firm. There is still much to be done in order to bridge the development gaps in our region. To reach our goal of integration, we must strengthen our achievements and face new challenges.
Hence our plan to grow. A need that was ratified by our Board of Governors, FONPLATA’s highest management body. We announced such decision some days ago.
To make it possible, we had to amend our Articles of Agreement. By doing this, FONPLATA – currently composed of Argentina, Bolivia, Brazil, Paraguay, and Uruguay – strengthens its new management and completes its transition to become a development bank, now able to establish strategic alliances with new member countries, as well as with other development banks and agencies.
The admission of new members entails certain conditions: they must be countries and institutions, provide additional benefits to FONPLATA, and share our institutional values and goals regarding the development of the region.
This will favor the development and productive integration of the region and its areas of influence.
I believe that this new phase of FONPLATA will enable both, its founding countries and prospective partners and allies to continue relying on an institution that promptly meets the specific requirements of its customers, and – to quote our motto – that brings development closer to the people.