The Inter -American Development Bank Group (Grupo IDB) announced that it works to expand its support for Argentina, with new credits for 3.9 billion dollars in the coming months.
“The Inter -American Development Bank group works to significantly expand its operations in the next 15 months in Argentina to increase its support to the country,” said the financial body in a statement released in Washington.
According to the statement, the IDB plans to close this year with five new operations approved for the public sector, for a total of 2.9 billion dollars, aimed at supporting structural reforms.
These programs will be added 1,000 million dollars, channeled through IDB Invest, aimed at strategic sectors such as energy, critical minerals, connectivity, health services and financing to SMEs through financial institutions.
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The agency said that the financing package “focuses on key priorities for the development of Argentina, including fiscal consolidation, the impulse to competitiveness, the modernization of infrastructure, and the promotion of private investment.”
Through a message on social networks, the Argentine Finance Secretary, Pablo Quirno, thanked the IDB for “his continuous support, now expanded, to the reform program” of the Argentine President, Javier Milei.
This Tuesday, earlier, the World Bank (BM) announced that it will accelerate the disbursement of credits for 4,000 million dollars for the South American country.
In the extended facilities program that Argentina signed last April with the International Monetary Fund, with total credits of that agency for 20,000 million dollars, the financial aid of other international organizations was included, including the World Bank (12,000 million dollars) and the IDB (10,000 million dollars).
The IDB and the BM announced their renewed support to Argentina after the meeting between President Milei and his American counterpart, Donald Trump, in New York, where the UN General Assembly is celebrated.
During this appointment, Trump said that the United States will give financial support to Argentina and said he was “very satisfied” with the work of Milei, who since his arrival to the Government, in December 2023, has applied a severe fiscal adjustment.
After several weeks of strong exchange pressures and with bulky debt maturities on the horizon, Argentina urgently needs to reinforce its monetary reserves.
Only between Wednesday and last Friday, the Argentine Central Bank sold $ 1.1 billion of reservations to try to contain the rise in the value of the American currency, while the growing doubts about how Argentina will face in January debt maturities with private creditors for 4,400 million dollars knocked down the valuation of Argentine bonds.
According to official data, Argentina’s gross reserves closed on Tuesday at 39,176 million dollars, but private experts estimate that net reserves are much lower, so the dynamics of exchange intervention is not sustainable.
With EFE information
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