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IDB increased in USD 500 million the total of credits for Argentina for 2017 thanks to the risk-country rating improvement

The Ministry of Finance and the multilateral credit organization signed agreements for more than USD1 billion for projects of road safety, rural economies, health care, urban infrastructure, foreign trade, telecommunications and institutional strengthening.

The Inter-American Development Bank announced that its credit approvals with sovereign guarantee for the Argentine Republic in 2017 will reach a total amount of USD2.1 billion dollars; this is USD500 million more than what had been estimated by the organization for 2017, which means a historical record for IDB operations in the country. USD300 million out of said amount are intended for the Province of Buenos Aires.

The President of the IDB, Luis Alberto Moreno, explained today after his meeting with President Mauricio Macri and Finance Minister Luis Caputo, that the Bank had expected an amount of approximately USD1.45 billion for its operations in Argentina in 2017. However, thanks to the improvement in the risk-country rating, within other elements, the IDB decided to add USD500 million more and an additional USD130 million financing for the Bi-national Project Agua Negra Tunnel.

In addition, the Minister of Finance, Luis Caputo, signed this Wednesday agreements with the President of the IDB for more than USD1 billion to finance regional infrastructure and development projects.

The agreements were executed at the Olivos Residence after the meeting held by the President of the IDB, President Mauricio Macri and members of the National Cabinet. Within that framework, Caputo highlighted: “We continue working to guarantee the conditions for economic development, through infrastructure investment in the different regions of the country”.

On the one hand, an agreement for the financing of 8 projects with sovereign guarantee that amount to a total of USD1.006 billion was signed.

The projects are:

  • Program to extend the capacity and safety in road corridors for a regional integration (Route 19) for USD300 million
  • Program for the development of metropolitan areas of the country II, USD80 million
  • Institutional strengthening for the Ministry of Finance and the Ministry of Treasury, USD13 million
  • Single window facility for foreign trade in Argentina, USD73.6 million
  • Program for the structuring of Agua Negra International Tunnel, USD20 million
  • Multiphase Program of primary health care for Chronic Non-Communicable Diseases, USD100 million
  • Program for provincial agricultural services IV, USD100 million
  • Program for drinking water and sanitation in the metropolitan area of the City of Buenos Aires

On the other hand, the financing of two projects from the Inter-American Investment Corporation (IIC), part of the IDB Group, was announced for a total of USD352.5 million. This project is aimed at improving connectivity between the City of Buenos Aires and the Southern area of the Province of Buenos Aires and at improving housing conditions at Barrio 31 of the City of Buenos Aires.

Finally, at the meeting, the officials announced that the IIC will enter into an agreement with the mobile phone company Telecom Personal for USD100 million. This loan will finance the extension of 4g network across the country and it will give access to up to 8.5 million subscribers.