MercoPress. South Atlantic News Agency

Kirchner okays up to 20% stake in Aerolineas

The Argentine state will re-buy up to 20 percent of the airline it privatized in 1990, according to an agreement signed in Madrid yesterday.

The deal reached by Argentina government officials and the Spanish owners of Aerolineas Argentinas reshapes the stock distribution of the airline to allow the state to repurchase a minimum of five percent of the shares and a maximum of 20 percent.

The agreement was signed by Economy Minister Felisa Miceli and Planning Minister Julio De Vido on behalf of the Argentine state and by Horacio Fargosi, CEO of Interivest, the holding that owns Aerolineas Argentinas.

The agreement was the first concrete result of President Néstor Kirchner five-day visit to Spain, which started on Tuesday.

Yesterday morning, the President met with King Juan Carlos at the start of a visit aimed at forging closer ties with Spain, seeking more investment and renegotiating Argentina's debt from its 2002 economic crisis.

Kirchner and his wife, Senator Cristina Fernandez, met with the king at the Zarzuela Palace near Madrid, and later had lunch with the royal family.

The leaders discussed bilateral ties and the political and economic situation in Latin America, a royal palace spokesman said.

During the lunch, which was also attended by other members of the Spanish government and business leaders of Spanish companies with large investments in Argentina, King Juan Carlos stressed that Spain was a staunch partner of Argentina.

"The Spaniards have always been and will be beside Argentina in the good moments and the more difficult ones, being happy with its successes and feeling its problems and hopes as its own. We're not indifferent to anything that happens to Argentina," King Juan Carlos said when he presented his toast. Buenos Aires Herald