IDB Reiterates Commitment to Argentina and Increases Support to Address Liquidity Needs

IDB President Mauricio Claver-Carone and Argentina’s Minister of Economy, Sergio Massa, met to discuss the Bank’s ongoing efforts to support Argentina and agreed to prioritize and optimize the Bank’s 2022 lending program to maximize support for Argentina’s liquidity needs. The decision is the result of productive meetings during which Claver-Carone and Massa discussed the minister’s ideas and economic policy plans for Argentina.

To demonstrate its commitment to Argentina, the IDB administration will present in September a $700 million Special Development Lending (SDL) package to the Board of Executive Directors to finance the “Program to Support Improved Fiscal Management and Economic Recovery.” This reflects a $200 million increase from the original amount, made possible by prioritizing Argentina's loan portfolio. This is expected to be disbursed in September.

Furthermore, the IDB administration will present a $500 million Policy-Based Lending (PBL) loan. This “Program to Support Public Policies for Sustainable and Resilient Growth in Argentina is a $200 million increase in budget support, also made possible by prioritizing Argentina’s programming. Together, these loans would enable the IDB to increase support for Argentina from $800 million to $1.2 billion in the final quarter of 2022. The Bank’s budgetary support for Argentina comes in the context of its compliance with an existing agreement with the International Monetary Fund (SDL) and the IDB’s own evaluation of the country’s macroeconomic conditions (PBL).

During the meeting, President Claver-Carone and Minister Massa also discussed final steps before the signature of another eight loans already approved by the Bank’s Board, totaling $1.208 billion. These loans make a major investment in social infrastructure, and include among other things, the “Program for Strengthening and Integration of Health Networks in the Province of Buenos Aires - PROFIR II,” for $300 million; the “Neighborhood Improvement Program V,” for $150 million; and the “Program to Improve Water Services in the Province of Buenos Aires,” for $75 million.

In addition, they previewed a forthcoming signature between Argentina and the IDB on the “Development, Investment, and Facilitation Program for Argentine Nature Tourism: the Nature Route.”

The IDB’s financing potential for the rest of 2022 could include additional programs totaling $725 million. If approved, this would increase the IDB’s total loans to Argentina this year to $2.37 billion.

Minister Massa noted that technical teams are in the advanced stages of discussions to define the country’s loan operations program for 2023, which is expected to total at least $1.8 billion.