IDB reaches an agreement with Argentina to support its liquidity

The agency and the Minister of Finance of Argentina agreed on a series of loans that aims to offer improvements to the economy

The president of the Inter-American Development Bank (IDB), Mauricio Claver-Carone, and the Argentine Minister of Economy, Sergio Massa, agreed to optimize the loan program of the multilateral organization in favor of the country for 2022, with the aim of maximizing support to your liquidity needs.

After several meetings, the IDB is going to present this month a package of Special Development Financing (SDL) to the Board of Executive Directors for a total of 700 million dollars to finance a “Support Program for the Improvement of Fiscal Management and Recovery Economic”. This reflects an increase of $200 million, made possible by prioritizing Argentina’s loan portfolio. The disbursement is expected for this month of September.

In addition, the IDB will present a $500 million PBL (Policy-Based Lending) loan. This “Public Policy Support Program for Sustainable and Resilient Growth in Argentina” represents an increase of 200 million dollars in budget support as a result of a prioritization of Argentina’s programming.

Together, these loans would increase IDB support to Argentina from $800 million to $1.2 billion in the last quarter of 2022. The Bank’s budget support to Argentina is part of an existing agreement with the International Monetary Fund (SDL) and the IDB’s own assessment of the country’s macroeconomic conditions (PBL).

During the meeting, President Claver-Carone and Massa also discussed the final steps before the signing of another eight loans already approved by the Bank’s Board of Directors, for a total of 1,208 million dollars.

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Source: dpa

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