March 4, 2021

The World Bank lends 500 million dollars to Argentina to promote inclusive growth

The World Bank (WB) approved on Thursday a loan of 500 million dollars to support Argentina in its process of economic recovery in order to promote inclusive growth led by the private sector.

This loan, according to a statement from the multilateral body, completes budget support of $ 1 billion, the first disbursement of which was made in November 2018.

"The project accompanies the implementation of public policies that promote inclusive growth and contribute to protecting the most vulnerable, with two central objectives: consolidating the bases for growth led by the private sector and strengthening social protection networks and equity of fiscal policy, "said the World Bank.

The director of the WB for Argentina, Paraguay and Uruguay, Jesko Hentschel, explained that this financial aid from Washington has the objective of "protecting the most vulnerable households, mitigating the inflationary impacts by maintaining the purchasing power of social programs and continuing to support the efforts to provide health services in an equitable manner. "

Likewise, the WB program aims to contribute to Argentina's business climate through measures that "improve competition, reduce trade barriers, facilitate the registration of new companies, encourage the development of capital markets and promote private investment. in renewable energies ".

Another of the priority areas of the project, according to the WB, is the strengthening of transparency and the promotion of integrity policies in companies.

The loan approved today worth 500 million dollars carries variable interest, is repayable in 32 years and has a grace period of 7 years.

The financing of the WB has been announced a day before the Board of another multilateral organization, the International Monetary Fund (IMF), meets this Friday to approve an agreement with the Government of Argentina for the disbursement of 5,400 million dollars after the fourth review of your financial assistance program.

In this case, the loan is of the stand-by type, which requires a strong intervention by the multilateral institution in national economic policies.

The last revision, which culminated with the authorization by the IMF Board to disburse 10.870 million dollars, was last February, after an agenda that included meetings with opposition leaders, unions and businessmen.

(tagsToTranslate) BM (t) million (t) Argentina (t) growth (t) inclusive

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