The Board of Directors of the World Bank (WB) approved today two loans worth a total of USD 950 million to support Argentina in facing its economic difficulties and strengthening the social protection for the most vulnerable.

“We receive this support to Argentina, focused on the most vulnerable sectors, in a crucial moment for our country and it is an evident sign of confidence”, said the Minister of Treasury, Nicolás Dujovne.

The first loan for USD 500 million will be aimed at the budgetary needs of the country. This support, known as Development Policy Financing (DPF), recognizes the efforts and public policies that promote inclusive growth.

The second loan for USD 450 million will be aimed at the Protection of Children and Young Adults Project. The goal is to reach 250,000 children not covered by the Universal Benefit per Child (AUH, for its acronym in Spanish).

“The World Bank offers its strong support to the country in these times of hardship, in particular to the most vulnerable”, said Jorge Familiar, Vice President of the World Bank for Latin America and the Caribbean. “This financing is aimed at protecting the most vulnerable families from the risk of poverty and at fostering inclusive and sustainable growth in the country”, he added.

After two days of working sessions, the meeting ended today. Progress was made on promoting private investment in infrastructure.

The meeting, which was held on the margins of the International Monetary Fund (IMF) and the World Bank annual meetings, was chaired by the Minister of Treasury Nicolás Dujovne and the Second Vice-president of the Argentine Central Bank Verónica Rappoport. Finance Ministers and Central Bank Governors discussed about infrastructure financing, the Compact with Africa initiative and the agenda on financial inclusion.

Infrastructure for development is one of the priorities defined by the Argentine G20 presidency and there has been progress on this subject throughout the year. Infrastructure is important for growth and the reduction of inequalities. However, there is still an important gap in infrastructure financing and the public sector resources are not enough to cover it. Argentina’s agenda looks at developing infrastructure as an asset class.

The officials also analyzed the Compact with Africa initiative, which was launched under the 2017 G20 to promote private investment in the African continent. 12 African countries have already adopted the initiative and the results are very positive in this first stage.

Finally, Finance Ministers and Central Bank Governors talked about financial inclusion. They analyzed different alternatives. Financial inclusion is very important to promote economic growth, financial stability and the reduction of inequalities.

The meeting ended with a press conference of the Minister of Treasury, Nicolás Dujovne, and the Second Vice-president of the Argentine Central Bank, Verónica Rappoport. They spoke about the main topics of discussion and underscored the progress made so far in different areas.

Within the framework of the International Monetary Fund (IMF) and World Bank annual meetings, the Fourth G20 Meeting of Finance Ministers and Central Bank Governors started today at Bali, Indonesia.

Finance Ministers and Central Bank Governors of the main economies in the world met in a two-day event to discuss the most relevant issues of the G20 agenda. The meeting started with a discussion on risks to the global economy and international financial architecture.

Regarding global economy, the officials analyzed the current economic and financial situation to identify risks in global economy, measures to prevent them and the necessary steps to be taken. Financial vulnerabilities, trade tensions and global inequalities were identified as risks. They also talked about international trade.

Later, Finance Ministers and Central Bank Governors discussed ways to make international financial architecture more resilient and they received the EPG final report. This report was created in 2017 to establish recommendations on global reforms for international financial architecture and governance of the International Financial Institutions system.

The second meeting will be held tomorrow at 10.45 am (Bali time). Discussions will be on infrastructure for development, one of the priorities defined by the Argentine G20 presidency; the Compact with Africa initiative; and financial inclusion.

Finally, Nicolás Dujovne, Argentine Minister of Treasury, and Verónica Rappoport, Second Vice-president of the Argentine Central Bank, will be giving a press conference to talk about the main topics of discussion and underscore the progress made so far in different areas, towards the G20 Leaders’ Summit that will be held next month.

October 10, 2018

The Executive Board of Directors of the Financial Fund for the Development of the River Plate Basin approved today USD 50-million financing for Argentina. The loan shall be aimed at the project “Support to the Railway Safety Program in the Metropolitan Area of Buenos Aires”.

The financing agreement was approved at the 160th Ordinary Board of Directors Meeting held in Asunción. Martín Soto, Undersecretary of International Financial Relations of the Ministry of Treasury, and Héctor Dottore, National Director of Financing with Regional Credit Organizations, participated in the meeting.

The project will develop the improvement of the signal system in the Metropolitan area of Buenos Aires; the improvement of railway tracks; the improvement of stations; the improvement of electric power; and the construction of viaducts and level crossings. The National Railway Plan is also financed by bilateral and multilateral organizations and by public-private partnerships.

FONPLATA is a multilateral organization which member countries are Argentina, Bolivia, Brazil, Paraguay and Uruguay. Its main purpose is to support the integration of member countries to achieve an inclusive development. It also contributes to the reduction of social and economic inequalities to achieve a better insertion in the region and into the global markets. Currently, the portfolio of transaction between the Argentine Republic and FONPLATA amounts USD 383 million.