MercoPress. South Atlantic News Agency

Kirchner of business trip to Spain

Argentine president Nestor Kirchner begins Wednesday an official visit to Spain expected to the dominated by business discussions.

Kirchner is scheduled to have lunch with King Juan Carlos and meet Primer Minister Jose Luis Rodriguez Zapatero who anticipated that "Spain continues and will continue to support Argentina".

However the more substantial of the visit will be with the Spanish business community that has large investments in Argentina including public utility companies (with frozen rates), Repsol-YPF and Aerolíneas Argentinas among others.

Reportedly Kirchner will announce the full payment of a one billion US dollars loan Argentina was granted by Spain during the 2001/02 collapse of the economy.

Other possible announcements include the return of the Argentine government to the country's flag air carrier Aerolineas through the acquisition of shares belonging to a Spanish group, plus the speeding up of Repsol-YPF investments in Argentina, following the Spanish company's ill experience in Bolivia.

Spanish investors are expecting President Kirchner to announce a gradual lifting of public utilities rates which have remained virtually unchanged since 2002/03, a motive of permanent contention with the Argentine government and which has discouraged investments.

Kirchner and Spanish Prime Minister José Luis Rodríguez Zapatero are also expected to sign a two-year bilateral co-operation agreement, a step toward sealing a strategic alliance, a status Spain has so far only granted to Chile, Brazil and Mexico.

This is President Kirchner's third official visit to Spain since taking office in May 2003. The Argentine delegation should be back in Buenos Aires next Saturday.