World Bank approves US$500million in financing for Argentina
Funds will provide budgetary support for social programmes dedicated to helping those in poverty. Latest installment is the second part of a total US$1 billion loan first agreed in November 2018.
The ced World Thursday Bank that announ- it had approved the disburse-ment of an additional US$500million loan to Argentina.
The institution said the funds would provide budgetary support for social programmes dedicated to helping those in poverty. The latest installment is the second part of a total US$1
billion loan first agreed in November 2018.
Jesko Hentschel, the World Bank’s director for Argentina, Paraguay and Uruguay, said
the funds would help to protect the most vulnerable households, with the economy still gripped by recession.
- To pro tectthemostvuln era bl eh ous eh olds,thisp ro jectsupports mitigating infla ti onimpactsbyma in ta in ingt he purc has ingpowerofsoci al pro
grams such as the Universal Child Allowance Program AUH and by continuing to
support efforts to provide equitable coverage of health servi-ces in the provinces, "he said
Argentina, home to Latin America’s third-largest economy, officially entered recession in 2018, after a currency crisis saw the peso crash in value against the dollar. Inflation has soared in the subsequent months,withp rice shav in gris enby mor et han 19 percentth is
- ment currently stands at 10.1 percent, this year(until May). Unemployment while poverty has risen to 32 percent.
The new loan is repayable overa total of 32 ye ar sandcomeswithav aria blesp re ad and agrace periodofsev en years.
"The project accompanies the implementation of public policiestopromoteinclusivegrowth and contribute to protecting the most vulnerable population, with two core objectives: consolidate the bases for private sector-led growth and strengthen social safety networks and the equity offiscalpolicy, "the World Bank said in a press release.
"To contribute to improve business climate, the financing supports measures to enhance competitiveness, reduce trade barriers, facilitate the registration of new firms, promote the development of capital markets and encourage private investment in renewable energy," it added.
Last year, the Mauricio Macri administration also agreed a US$56-billion loan package
with the International Monetary Fund.