Argentina will promote macroeconomic stability and strengthen its public finances with a $700 million loan from the Inter-American Development Bank (IDB). 

The loan will provide budgetary support to help the country meet its short-term financing needs and protect social spending on vulnerable groups and infrastructure, while implementing reforms to reduce the public deficit, promote price stability, and ensure debt sustainability. 

The IDB financing is in line with the goals of the Extended Fund Facility that the country signed with the International Monetary Fund (IMF) in March 2022, and will be supplemented with financial assistance from other multilateral lending agencies. 

The IDB loan resources will support the Government’s commitment to press forward with reforms under the IMF program. Specifically, the IDB financing will help strengthen public finances, prop up efforts to stabilize prices, and bolster the balance of payments. 

The IDB loan is for a seven-year term, with a three-year grace period, and an interest rate based on SOFR.