As credits from multilateral banks, such as the IDB, the World Bank or CAF, among others, are to finance specific projects, under-execution causes delays in disbursements. At a time when foreign exchange is scarce and traditional debt markets are practically closed for Argentina, these organizations appear as one of the few options to obtain financing at a reasonable interest rate.
The report prepared by the AGN, which Ámbito was able to access, audits 52 of the 257 projects in execution. These are initiatives that are representative of current credits, since among them they concentrate financing for US$6.9 billion. More than 50% of the total portfolio amounting to US$12,899 million.
From that document, it can be deduced that there are projects that date back to previous administrations and have made little progress. There is for example an IBRD loan earmarked for the Integrated Risk Management Program in the Rural Agroindustrial System (GIRSAR), which was in charge of the former Ministry of Agriculture, Livestock and Fisheries, which only executed 1.2% of the budgeted amount. There is also a credit from Fonplata to finance a Comprehensive Improvement Program for Border Settlements that is in charge of the Ministry of Territorial Development and Habitat, where 1.3% of the total was executed.
The report also gives an account of a project for the development of renewable energies agreed with the World Bank for US$170 million. Two months from its completion, more than US$100 million remain to be disbursed, which in this context could be useful for the Central Bank’s reserves. There are more than a dozen cases in the same situation and others that incur constant rescheduling.
In the Government they put under the magnifying glass the efficiency of the management of the former Secretary of Strategic Affairs, Gustavo Béliz. They understand that, although in many cases the pandemic caused a stoppage in the works in the first part of 2020, the under-execution of the areas is due to the lack of management since no instance above the portfolios was in charge of guarding the progress of the proyects.
The Minister of Economy specifically asked the new Secretary of Development Planning and Federal Competitiveness, Jorge Neme, to speed up the execution. The former deputy chief of staff will be in charge of an International Financing Executing Unit to develop productive projects. The Tucuman, who is a specialist in this type of management, has already prepared a folder with several initiatives that will be carried out in this framework.
Source: Ambito
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