 James D. Nealon |
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On November 20, the
United States voted in favor of a $170 million International
Finance Corporation (IFC) loan and up to $350 million in
guarantees by the Multilateral Investment Guarantee Agency
(MIGA) for the construction of a greenfield bleached eucalyptus
kraft pulp mill in Fray Bentos, Uruguay, by Oy Metsa-Botnia
Ab, a Finnish company, one of Europe 's largest paper pulp
producers.
In response to today's
announcement that the loans had been approved, U.S.
Chargé D'Affaires James Nealon stated that "we
have confidence in the IFC’s finding that the proposed
mills compare favorably with the best available technology
and best environmental practice for mills in Europe and
North America." He added that the United States "shares
an interest in promoting the economic development of Uruguay
and other economies in the region. We believe this loan
will have a significant, positive effect on the regional
economy.”
This investment could have a significant
impact on Uruguay, as it is expected to increase GDP by
$350 million (2% of GDP) per year. The plant will provide
direct employment for 300 people and indirect employment
for another 2200 people.
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