MercoPress. South Atlantic News Agency

Spain supports Argentine debt exchange program.

Spanish President Jose Luis Rodriguez Zapatero ended Wednesday his first official visit to Argentina pledging to help the country fully recover from its economic crisis and create a better business climate for Spanish companies.

During his brief stay in Buenos Aires, less than 24 hours, Mr. Rodriguez Zapatero met with President Nestor Kirchner, Spanish citizens living in Buenos Aires, relatives of Spaniards who disappeared during the 1976-83 military regime and representatives from Spanish companies with investments in Argentina.

The two leaders promised to intensify bilateral political dialogue, to cooperate closely in international organizations, to combat terrorism and contribute to the maintenance of world peace and a grater effort in achieving regional integration mechanisms that should pave the way for a full agreement between the European Union and Mercosur.

During a press conference before leaving for Chile early afternoon, Mr. Rodriguez Zapatero announced a plan to "exchange" 60 million euros of Argentina's debt to be invested in education. The test operation means Madrid condones the debt but the funds must be redirected to schools.

Even more important Spain confirmed its full support to the Kirchner administration's debt exchange process involving over 80 billion US dollars in defaulted sovereign bonds, which he said must be "satisfactory for Argentina" in the current rebound economic process.

Regarding Spanish companies in Argentina, among which Repsol YPF SA and Telefonica Argentina SA, Mr. Rodriguez Zapatero indicated they are committed to keep "increasing their investments" in Argentina but recalled that those businesses also suffered the consequences of the 2001/2002 meltdown of the Argentine economy.

Repsol YPF and Telefonica are the leading corporations in Spain in oil and telecommunications and have invested over 15 billion US dollars in Argentina.

The Spanish president also met with relatives of Spaniards disappeared during the Argentine military dictatorship (1976/1983) and was promised full support from President Kirchner in solving pending cases.

"We will reach to the bottom of things", promised Mr. Kirchner in direct reference to the 40 "disappeared" Spanish citizens.

Kirchner promised to "get to the bottom of things" in clearing up the cases of the missing Spanish citizens, who number 40, according to what Zapatero told the president of the Disappeared Spaniards Committee, Maria Consuelo Castaño. Mr. Rodriguez Zapatero arrived in Buenos Aires Tuesday from Brazil and left at 13:00 local time Wednesday for Santiago de Chile, the third and last leg of his South American tour.

Spanish investments in Mercosur (Argentina, Brazil, Paraguay and Uruguay) plus associate member Chile exceed 84 billion US dollars.