MercoPress. South Atlantic News Agency

WB and IDB pledge further funding for Milei's Argentina

The IDB and WB announcements came after the IMF's Board approved a US$ 20 billion loan

The World Bank (WB) announced Friday a US$ 12 billion financing package for Argentina over three years to support economic stabilization and reforms. Pending board approval, the initiative consists of several contributions as follows:

US$ 5 billion from the International Bank for Reconstruction and Development (IBRD) for public sector initiatives, with US$ 1.5 billion for immediate disbursement, focusing on tax modernization, education, job creation, and infrastructure.

US$ 5.5 billion from the International Finance Corporation (IFC) for private sector development, with US$ 2 billion potentially in the first year, targeting infrastructure, agribusiness, critical minerals, and energy.

US$ 1.5 billion in guarantees from the Multilateral Investment Guarantee Agency (MIGA) to expand credit access, especially for small and medium-sized enterprises (SMEs), and attract infrastructure investment.

The announcement was made after the International Monetary Fund (IMF) board agreed to a US$ 20 billion loan

In addition, the Inter-American Development Bank (IDB) agreed to a US$ 10 billion package split into US$ 7 billion for public sector projects and US$ 3 billion for private sector activities.

In Buenos Aires, all this fresh funding was construed as demonstrations of global confidence in Argentina's recovery under President Javier Milei's government.

“The World Bank Group today announced a $12 billion support package for Argentina, representing a strong vote of confidence in the Government's efforts to stabilize and modernize the economy,” the entity said in a statement. The new loan “is designed to support reforms that will continue to attract private investment,” it added. “This comprehensive package underscores the World Bank Group's commitment to support Argentina's reform path and help the country boost long-term growth and employment opportunities.”

The loan shows the WB's “strong confidence in the government's efforts to stabilize and modernize the economy,” it further noted.

Meanwhile, the IDB pointed out that “this support is part of a broader international effort to support Argentina's ongoing recovery.” Under the Country Strategy 2025-2028 being developed together with the Argentine Government and in line with the IMF program, “the IDB will support reforms that support the country's efforts to further improve the efficiency of public spending and create more favorable conditions for private sector-led development,” a communiqué read.

“The IDB is committed to supporting Argentina's economic program, working closely with the IMF and the World Bank. Not only are we coordinating with the government, we are implementing together key measures to maintain and strengthen the fiscal order achieved by President Milei's government, while promoting private sector-led development,” said IDB President Ilan Goldfajn.