The IDB financing is aligned with the objectives of the Extended Service Program of the International Monetary Fund (IMF), signed with the country in March of this year, and will be complemented by financial assistance from other multilateral organizations to Argentina.
“The resources of the IDB loan will support the efforts of the Government of Argentina in its reform program with the IMF. Specifically, the IDB financing will help strengthen public finances, assist efforts aimed at price stability, and support the strengthening balance of payments,” the statement said.
The IDB loan has an amortization term of seven years and a grace period of three years and an interest rate based on the SOFR.
The approval of this credit occurs during the first day of the Economy Minister, Sergio Massa, in Washington. The official is already in the United States to participate in the Annual Assembly of the IMF and the World Bank, the Summit of Finance Ministers of the G20 and another meeting of Finance Ministers organized by the IDB.
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.
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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