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IDB approves $400 million emergency loan to Argentina to mitigate impact of crisis on the poor

The Inter-American Development Bank today approved afast-disbursing loan of $400 million to Argentina to help finance social protection and to reduce the impact of a crisis on the very poor.

The loan supports measures to be adopted by the government that will ensure macroeconomic stability while focusing the benefits of social services on low-income groups.

The program will prevent a decrease in coverage of health, education and social development programs while reforms are being undertaken.

Conditions for disbursement of the first tranche of the loan include a stabilization agreement with the International Monetary fund, protection for priority social programs, support for a strategy that promotes efficiency and continuity in social programs and advances in social protection in health, education and social development.

The loan complements an IDB $1.5 billion emergency loan approved for Argentina in February of this year for social protection and reflects the IDB strategy of supporting greater efficiency in social services, poverty reduction and a better quality of life for the people.

The loan is for a five-year term, with a three-year grace period, at an interest rate based on the six-month dollar LIBOR rate with a spread of 400 basis points.

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