MercoPress. South Atlantic News Agency

Massa gets loans from IDB and WB ahead of IMF meeting

Massa is convinced that the IMF will grant Argentina another US$ 7.5 billion

The Inter-American Development Bank (IDB) and the World Bank (WB) will grant Argentina additional financing of US$ 1,300 million, Economy Minister and presidential candidate Sergio Massa announced Tuesday from Washington DC.

The funds will go to the promotion of SMEs and food policy, to the expansion of the Salto Grande dam, to the construction of a bridge between Corrientes and Chaco, and to knowledge economy exporting companies, it was explained.

“This has the central objective of completing a quota of 1,300 million dollars between now and the end of the year of additional financing from the World Bank and the IDB, which in a way are fundamental for Argentina to continue strengthening reserves, but also to continue financing projects for development”, said Massa in a press conference after meeting with IDB officials.

The Board of Directors of the International Monetary Fund (IMF) is to convene Wednesday to decide on the approval of the fifth and sixth revisions of the Extended Facilities Agreement with Argentina, which would allow additional disbursements of up to US$ 7.5 billion to strengthen Argentina's Central Bank (BCRA) reserves.

“The objective is to continue accumulating reserves and trying to recompose in a year that is perhaps the most tragic in terms of economy for Argentina due to the impact of the drought. Today we were doing the math and it is as if the United States had lost 805 billion dollars in imports,” Massa said.

Also Wednesday, Massa will hold a meeting with IMF Managing Director Kristalina Georgieva “to review the whole disbursement procedure”, since Argentina completed the payment of installments in the last weeks through credit operations with Qatar, with China, and with the CAF, so it is necessary to define “how much is transferred to Argentina in dollars and in yuan, especially taking into account that part of the disbursements to Argentina were made in drawing rights, but part of the disbursements in yuan,” Massa explained.

“We are convinced that tomorrow the revision that will allow us to access a disbursement for Argentina of US$ 7.5 billion will be approved,” Massa also noted.

Massa also pointed out Tuesday that he obtained US$ 650 million from the WB and US$ 650 million from the IDB ahead of Wednesday's talks with the IMF. He also joked that the dollarization proposed by Libertarian Congressman Javier Milei was causing a stir among Washington's financial leaders: “The idea of someone promising to make the economy of their country with their currency worries them.”

The Argentine official hopes to make a series of announcements once he returns from his trip, according to Economy Ministry sources in Buenos Aires. However, the minister-candidate will take a little longer to be back after scheduling a meeting in Asunción with Paraguay's new President Santiago Peña.