WASHINGTON DC, July 11, 2019 – The World Bank Board of Directors approved today US$500 million in new financing to support Argentina’s economic recovery efforts with the aim to promote inclusive private sector led growth. This loan completes the World Bank budget support of US$1 billion, which had a first disbursement in November 2018.
The project accompanies the implementation of public policies to promote inclusive growth 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 of fiscal policy.
“To protect the most vulnerable households, this project supports mitigating inflation impacts by maintaining the purchasing power of social programs such as the Universal Child Allowance Program (AUH) and by continuing to support efforts to provide equitable coverage of health services in the provinces,” said Jesko Hentschel, World Bank director for Argentina, Paraguay and Uruguay.
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.
The strengthening of transparency and the promotion of integrity policies in firms is another priority action of the project. Which also promotes fiscal responsibility and a more progressive tax structure in the provinces.
The US$500 million Programmatic Development Policy Financing is a flexible loan with a variable spread, 32 years maturity and a seven-year grace period.
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