The operation will finance the second phase of a program to modernize financial and budgetary management with a greater focus on results
The Inter-American Development Bank approved a loan for $36 million to Argentina to fund a second operation in the Program for Productive Institutional Strengthening and Provincial Fiscal Management.
The program will strengthen the capacity of the Ministry of Economy and other public institutions to make decisions based on performance and results at the national and subnational levels. Its specific objectives are to modernize financial and budget management of the National Public Administration and strengthen management for results in sub-national public and public/private entities.
In one component, the program will strengthen the Ministry of Finance by developing the technological framework needed to support the modernization of financial management and implementation of budgeting based on results in the national government.
A second component seeks to strengthen public and/or public/private institutions to improve the quality of services and goods produced, with a greater focus on results.
The program’s first phase established the methodological, institutional, and technological foundation for moving toward performance- and results-based management.
"This second program, in addition to continuing to strengthen public performance in sub-national issues, seeks to promote management that goes beyond executing public budgets, and increasingly moves towards achieving goals and results," said Pablo Valenti, the IDB’s project team leader.
The IDB loan of $36 million has a 25 year-term with a five-year grace period and an interest rate based on LIBOR. Local counterpart funds will total $9 million.