The Diplomat
The Council of Ministers yesterday authorized the signing of the Cofinancing Framework Agreement between the Spanish Agency for International Development Cooperation (AECID) and the main institutions of financial cooperation for development of France, Germany and Italy.
With the formalization of this Framework Cofinancing Agreement, AECID’s objective is to promote reinforced cooperation with the other three major European financial cooperation institutions, the French public financial agency for development aid, Agence Française de Développement, the German governmental development bank Kreditanstalt fur Wiederaufbau and the Italian investment bank Cassa depositi e prestiti S.p.A.
This fulfills the provisions of the Memorandum of Understanding signed between these European institutions on October 20, 2021, which established the objective of moving towards a platform for co-financing public development projects in countries of common interest (Joint European Financiers for International Cooperation, JEFIC, the name given to the association of these four institutions).
In the case of AECID, financing would be provided through the Development Promotion Fund (FONPRODE) by means of credits to the State and possibly technical assistance, which would have to be authorized, on a case-by-case and operation-by-operation basis, by the Council of Ministers. The Cofinancing Framework Agreement will be applicable and will enter into force on the date on which all parties have signed it, which is expected to be March 17, 2023.
