Washington DC, February 24, 2023 - Today, the World Bank Managing Director of Operations, Axel van Trotsenburg met with Sergio Massa, Argentina’s Minister of Economy at the G20 meeting in Bengaluru, India. Mr. van Trotsenburg and Minister Massa discussed key milestones for the program the Bank has in Argentina to promote inclusive and sustainable growth, including two new projects that will be discussed by the Bank’s Board on February 24, as well as the country’s macroeconomic situation.
Minister Massa presented how the Argentine government is advancing on its plan to stabilize macroeconomic conditions. Mr. van Trotsenburg acknowledged the importance of enhancing Bank support at times when budget allocations are constrained and will explore increasing Bank funding in projects critical to the poor and vulnerable such as Matanza-Riachuelo river basin project. The Minister and Mr. van Trotsenburg confirmed their commitment to speed up the execution of the portfolio including through increased disbursements and to actively manage portfolio execution including counterparty management. All these measures are expected to lead to strong disbursements. Finally, van Trotsenburg indicated that the Bank is preparing projects to benefit the poor and vulnerable for $1 billion dollars in the first six months of 2023. The Minister and Mr. van Trotsenburg confirmed their commitment to continue working together to promote inclusive and sustainable growth in Argentina.
The World Bank has been partnering with Argentina for decades. Over the last few years, this partnership has been strengthened, and the World Bank has approved new lending worth $1.34 billion in 2022 and is targeting $1 billion in the first quarter of 2023. Two loans will be presented to the Bank Board on February 24, one to reduce high school dropouts by supporting a scholarship program for US$300 million and another to support urban development and a more equitable access to housing for the poor for US$150 million.
The Bank portfolio in Argentina is valued at $7.56 billion, comprising of 22 projects for a total of US$7.1 billion plus an IBRD Guarantee of US$466 million.