WASHINGTON, November 1, 2018 – The World Bank Board of Executive Directors approved a new financing package today that includes two loans totaling US$950 million to help Argentina cope with economic difficulties and reinforce social protection for its most vulnerable citizens.
“This support to Argentina, especially focused on the most vulnerable sectors, comes at a crucial moment for our country and is a clear sign of confidence,” said Nicolas Dujovne, Minister of Finance of Argentina.
The first loan will provide US$500 million to help cover budget needs in the country. This support, known as Development Policy Financing (DPF), recognizes country efforts and public policies that promote inclusive growth.
The Board also approved US$450 million in additional financing for the Children and Youth Protection Project, with the aim of reaching 250,000 children not yet included in family allowance programs, including the Universal Child Allowance (AUH, in Spanish).
“In these difficult times, the World Bank Group is offering our strong support and solidarity to Argentina, especially to the most vulnerable people,” said Jorge Familiar, Vice President of the World Bank for Latin America and the Caribbean. “This financing will help protect the neediest families from falling into poverty, while laying the foundation to boost inclusive, sustainable economic growth.”
The US$500 million financing supports Government efforts to accelerate inclusive growth. It aims at improving the business climate and at facilitating the creation of new businesses. Likewise, it supports policies carried out to improve the design and reach of social protection programs, as well as the expansion of universal health care, aimed at reducing inequality in the country.
The US$450 million financing represents additional support for the Children and Youth Protection Project, which began in 2016 with a US$600 million loan. The project has identified and registered more than 1 million children, 370,000 of which were incorporated as new beneficiaries of family allowances. This additional support will focus on incorporating 250,000 more children to the eligibility process for social protection programs by 2020. Moreover, it will seek to simplify the verification processes for attending school and health checkups, necessary requirements for maintaining the status of AUH beneficiary.
The Development Policy Financing has a variable margin, a 32.5-year maturity period and a 7.5-year grace period.
The additional financing for the Children and Youth Protection Project has a variable margin, a 32-year maturity period and a 7-year grace period.
Learn more about the work of the World Bank in Argentina: https://www.worldbank.org/ar
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