Argentina will receive a $500 million loan from the Inter-American Development Bank (IDB) to strengthen its balance of payments, advance structural reforms of its fiscal policy framework, and support its economic recovery process.
The loan is part of a $10 billion package of IDB financing for the country’s public and private sectors over the next three years to continue boosting the efficiency of public administration and creating better conditions for private-led development. The financing aligns with the country's recent agreements with the International Monetary Fund and the World Bank for restoring economic stability and the path to sustainable development.
The IDB’s budget support, provided as a Special Development Loan, will back the country as it addresses balance-of-payment challenges, reinforces fiscal sustainability, strengthens external stability, and deepens structural reforms to create a more market-oriented economy.
The program supports the most vulnerable sectors. This support is provided through the strengthening of targeted social programs and the reduction of the inflation rate, achieved by implementing a robust fiscal anchor, eliminating monetary issuance, and recapitalizing the Central Bank of the Argentine Republic.
The financing will help the Government of Argentina implement policies to accumulate reserves and create better conditions for development driven by the private sector.
The IDB loan has a disbursement period of 12 months and a repayment period of seven years, with an interest rate based on SOFR.
About the IDB
The Inter-American Development Bank (IDB) is devoted to improving lives across Latin America and the Caribbean. Founded in 1959, the IDB works with the region’s public sector to design and enable impactful, innovative solutions for sustainable and inclusive development. Leveraging financing, technical expertise and knowledge, it promotes growth and well-being in 26 countries.
Planes,Maria Soledad
