The Minister of Economy Sergio Massa agreed this Friday in India with the Managing Director of Operations of the World Bank, Axel van Trotsenburg, that the Argentina will not disburse the local counterpart financing on the credits approved by the entity for 2023 and 2024, with savings for the country of US$ 400 million.
The meeting took place within the framework of the G20 Summit of Economy Ministers and Central Bank Presidents that is taking place in that country, when Massa and Van Trotsenburg analyzed the main projects of the Bank’s program in Argentina to promote inclusive growth.
Within this framework, it was agreed that on the credits approved by the World Bank for the years 2023 and 2024, Argentina will not disburse the local financing counterpart, which represents US$ 400 million in savings, it was officially reported.
Besides, an additional disbursement of US$ 100 million will be made for reimbursement corresponding to the Matanza-Riachuelo programwith which from the Palace of Finance it was highlighted that “the situation of the Argentine Treasury is fiscally strengthened for this year.”
“This savings planned for this year and the next will occur thanks to the fact that Argentina will stop contributing the local counterpart that usually participates in this type of credit,” they explained.
Trotsenburg also undertook to raise credits for more than US$ 1,000 million to the board of directors for the most vulnerable sectors, during the first half of this year.
In fact, in Washington, the WB board of directors will discuss the Argentine case today in part of its sessions, and it is expected that there will be news with two credit projects for the country, this afternoon, to reduce school dropouts by supporting a scholarship program for US$300 million, and another to support urban development and more equitable access to housing for vulnerable sectors for US$150 million.
According to official sources, Massa presented how the Argentine government is advancing in its plan to stabilize macroeconomic conditions.
Meanwhile, Van Trotsenburg “recognized the importance of increasing Bank support at a time when budget allocations are restricted and will explore increasing Bank financing for critical projects for those who live in vulnerable situations, such as the watershed sanitation project of the Matanza-Riachuelo river”.
Massa and Van Trotsenburg committed to actively manage the execution of the loan portfolioincluding the management of counterpart financing, indicated from the WB, and remarked that “it is expected that all these measures will allow for strong additional disbursements.”
The WB official indicated that “the Bank is preparing projects to benefit the most vulnerable for US$ 1 billion in the first six months of 2023.”
The World Bank approved new loans worth US$1.34 billion in 2022.
The Bank’s portfolio in Argentina is valued at US$7.560 million and comprises 22 projects for a total of US$7.100 million, plus an IBRD guarantee of US$466 million, the multilateral organization specified.
