The United States is ending its policy of opposing most lending to Argentina from multilateral development banks, the US Treasury Department announced. US Treasury Secretary Jack Lew informed Argentine Finance Minister Alfonso Prat-Gay of the move on Thursday when the two met in Davos, Switzerland, the department said in a statement.
It said the United States will consider each Argentine project on its own merits.
The policy had been in place since 2011 as part of a larger US campaign to pressure Argentina to pay debts and other obligations to American investors a decade after Argentina defaulted on more than $81 billion of government bonds.
It meant the U.S voted against new loans to Argentina at the World Bank and Inter-American Development Bank.
Argentina's business friendly president, Mauricio Macri, has made swift reforms since taking office in December, including resuming talks to reach a deal over the unpaid debts with US hedge funds. Macri also has eliminated capital controls and cut onerous export taxes.
Lew said the United States was ending it policy in light of the new government's progress on key issues and positive economic policy trajectory, the Treasury statement said.
In related news President Mauricio Macri on Thursday held a bilateral meeting with US Vice President Joe Biden on his second day in Davos. Macri was accompanied by lawmaker and leader of the Renewal Front, Sergio Massa, who competed in the Argentine general elections and ended up in third place.
At the meeting Macri asked Massa to join him and Biden in a photo during the Thursday meeting.
Biden commented, I want the American press to observe something. The new president brought a member of the opposition with him. That's what we've got to do at home.
Macri also met with Prime Minister of Ireland Enda Kenny. They discussed cooperation projects in the technological sector. Macri was formally invited to visit Ireland.
After the meeting with the Irish leader, Macri held a brief encounter with the Mayor of Paris, Anne Hidalgo.