IDB sources confirmed that it is scheduled for tomorrow at 11 o’clock that the board of the multilateral organization, where Latin America has a greater presence, will deal with the Argentine case.
During Massa’s first visit to the United States, in early September, the IDB promised to present by September “a package of Special Development Financing (SDL) to the Board of Executive Directors for a total of $700 million to finance a “Support Program for Improving Fiscal Management and Economic Recovery”.
In addition, the IDB will present a US$500 million PBL (Policy-Based Lending) loan, and the Program to Support Public Policies for Sustainable and Resilient Growth in Argentina represents an increase of US$200 million in budget support.
These projects were delayed in the IDB’s agenda due to the decision to remove the then president of the IDB, Mauricio Claver-Carone. The official was replaced on an interim basis by the Honduran, Reina Mejía Chacón, until the body’s voting process is completed, which will last until the end of October.
On the whole, The loans that Argentina will receive from the IDB would allow increasing IDB support to Argentina from US$800 million to US$1.2 billion in the last quarter of 2022.
On the same occasion, the IDB highlighted that “the Bank’s budget support to Argentina is part of the fulfillment of an existing agreement with the International Monetary Fund (SDL) and the IDB’s own evaluation of the country’s macroeconomic conditions (PBL)”, because they are freely available funds.
Argentina received from the IMF the second revision of the program of $44 billion that it maintains with our country, and that gave the green light for the disbursement of US$3.8 billion from that body, which will be computed as of this Tuesday in Argentine reserves.
In this way, the Government expects to add between the IMF and the IDB US$5,000 million in reserves from the agencies, and expects another US$5,800 million from the IMF that would come by December, if the next one approves completely the third revision corresponding to the third quarter of 2022.
Source: Ambito
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