The IDB board will approve credits for US$ 700 million for Argentina

The IDB board will approve credits for US$ 700 million for Argentina

The IDB board of directors is preparing to approve two freely available credits.

The IDB board is preparing to approve this Wednesday a US$700 million Special Financing for Development (SDL) package for Argentina, sources from the multilateral organization specified.

The approval of the credit will coincide with the first day of the Economy Minister, Sergio Massa, in Washington, who travels to that city to participate in the Annual Assembly of the IMF and the World Bankthe G20 Finance Ministers Summit and another meeting of Finance Ministers organized by the IDB, among the most important meetings.

IDB sources told Télam this afternoon that it is scheduled for tomorrow at 11 o’clock that the board of the multilateral organization, where Latin America has a greater presence, will deal with the Argentine case.

In early September, during Massa’s first visit to the United States, the IDB promised to present by September “a package of Special Development Financing (SDL) to the Board of Executive Directors for a total of US$700 million to finance a ” Support Program for the Improvement of Fiscal Management and Economic Recovery,” according to the statement issued on that occasion.

Thus, processing of a US$ 500 million PBL (Policy-Based Lending) loan is pending.

This “Program to Support Public Policies for Sustainable and Resilient Growth in Argentina” will mean an increase of US$200 million in budget support as a result of prioritizing Argentina’s programming.

The SDL financing package, as well as the PBL loan, had been delayed on the IDB’s agenda in previous months, in part due to the sudden irruption of the decision to dismiss the then president of the financial organization, Mauricio Claver-Carone.

The official was replaced on an interim basis by the Honduran Queen Mejía Chacón until the body’s voting process is completed, which has already begun and will last until the end of October.

Loans to Argentina

A few weeks ago, the IDB highlighted that “the Bank’s budget support to Argentina is part of the fulfillment of an existing agreement with the International Monetary Fund (SDL) and the IDB’s own evaluation of the country’s macroeconomic conditions (PBL)” , because they are freely available funds.

Precisely last Friday, Argentina obtained the formal approval of the IMFwhich approved the second revision of the US$ 44,000 million program that it has with our country, and which gave the green light for the disbursement of US$ 3,800 million from that body, which will be computed as of today in Argentine reserves.

Thus, The Government expects to add between the IMF and the IDB US$ 5,000 million in reserves from the organizations, and expects another US$ 5,800 million from the IMF that would come in Decemberwith the approval of the third review corresponding to the third quarter of 2022.

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