While the Government finalizes the details with the IMF to "relieve" the agreed reserve goal in a context of lower foreign currency income and dripping in the Central Bank, the World Bank approved on Monday two
loans for Argentina
, for a total amount of $450 million.
As confirmed by sources from the Ministry of Economy, the organization gave the go-ahead for
two new financings for Argentina: one of US$ 300 million
destined to reduce dropout rates both in secondary school and in higher education, and
another from US $150 million
to support planned urban growth that allows for more inclusive access to housing.
After the announcement, Sergio Massa stated: "It is a great satisfaction to have the support of the World Bank to contribute to the financing of educational inclusion, as well as to launch a habitat and urban land program to improve living conditions and the access to infrastructure and services for more Argentine men and women”.
The disbursement comes at a critical time
.
This weekend it was announced that an agreement was reached with the IMF to make the net reserve goals more flexible, which meant that the Central Bank had to count US$7.7 billion by the end of March, when it is at least US$3.5 billion below.
Between Monday and Tuesday the body will make this change official, which gives the government oxygen in the short term and avoids the political coup of requesting a "waiver" for failing to meet the goals.
The turn of multilateral organizations has been on Massa's agenda since his arrival at the Palacio de Hacienda.
The funds, in addition to increasing the coffers of the Central, will be destined for two programs agreed with the World Bank.
On the one hand,
US$ 300 million will go to the Project "Improving Inclusion in Secondary and Higher Education for Results"
that supports the national Progresar scholarship program.
This program currently reaches 1.4 million vulnerable young people in order to accompany them and encourage them to finish their studies.
"This is a fixed-margin loan, repayable in 31.5 years and has a grace period of 8 years," they explained.
At the same time,
another US$ 150 million will form part of the Habitat and Urban Land Project
, which will be implemented in 40 municipalities throughout the country "to improve living conditions in 17,000 homes through urban growth planning and the provision of better infrastructure and services in villas, informal settlements, and degraded areas".
It is a variable spread loan, repayable in 32 years and has a grace period of 7 years.
Among other things, it will provide the connection to basic services such as potable water, sewage networks, gas, and electricity in vulnerable neighborhoods.
On his trip to India, Sergio Massa had met with the World Bank's Managing Director of Operations, Axel van Trotsenburg.
The representative of the organization had advanced "the Bank is preparing projects to benefit the most vulnerable for US$ 1,000 million in the first six months of 2023."
Last year it had already approved new loans worth US$1.34 billion in 2022.
In addition to this disbursement, Argentina obtained a "saving" of US$ 400 million in interest on loans already granted and those planned for this year.
NS
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