March 10, 2002

ARGENTINA AND IDB SIGN AIDE MEMOIRE TO CONSIDER THE REFORMULATION AND REDIRECTING OF SOCIAL SECTOR LOANS TO SUPPORT EMERGENCY SOCIAL PLAN $694 million would be reoriented for social priorities

FORTALEZA, Brazil –Argentine Economy Minister Jorge Remes Lenicov and Inter-American Development Bank President Enrique V. Iglesias today signed an aide-mémoire pledging to take the necessary steps to consider the reformulation and redirecting of disbursements of up to $694 million in loans already approved by the Bank. The resources will be channeled to priority social programs, and disbursements would be made in a period of 30 months.

“We have always supported Argentina and will continue to support the country, especially in times of crisis like the present one,” Iglesias said, reiterating the readiness of the Bank to seek new ideas and offer financial support to overcome the crisis.

Argentina and the Bank are considering the reformulation of five programs financed by the IDB: 1) assistance to vulnerable groups, 2) scholarships for school attendance, 3) primary health care and medicine, 4) neighborhood improvements and 5) identification, selection, registration, monitoring and evaluation of social programs.

IDB financing would support the Emergency Social Plan launched by the government to protect investments that benefit the poorest sectors of the population most affected by the present economic crisis.

The centers of activity of the government plan are subsidies to heads of households who are unemployed and the provision of emergency food and medical supplies. The official strategy is to help poor families and give a priority to those with young children, especially health care and school assistance for children and adolescents, and training for the heads of households.

The IDB has historically supported Argentina, one of the founding members of the institution, and has provided the country with $20,2 billion in 242 loans.