Leading Argentinean citrus exporter San Miguel is signing a deal for a $20 million loan over a 10-year term from the World Bank's International Finance Corporation to modernise its operations.

The funding has been sought due to the devaluation of the peso in recent years which has made it hard for San Miguel to re-invest in its business. The project is a significant one for the World Bank as San Miguel is the largest employer in the north-western Argentinean region of Tucumán: it employs some 4,500 people during the lemon season's peak between May and September.

Priorities for the loan include a sophisticated system for dealing with run-off and improvement in processes for handling fruit for industry.

"The investments will lead to an improvement in product for export and as a result the opportunity to be able to sell at better prices," said San Miguel president Luis Roque Otero Monsegur. They will also help reduce operating costs.

San Miguel's production in Uruguay is also likely to get a boost from the investment for improvement in rootstocks and treatments for orange, easy-peeler and grapefruit production.

The Tucumán company has made a commitment to keep the IFC informed of the progress of its various projects and the funding will be released in tranches over the next two years. Interest will be charged at Libor plus 4.5 per cent.

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