Facing the Second roundin 28 days left until the runoff, Sergio Massa takes his first steps in his strategy, from his role as candidate and head of the Treasury Palace. One of the axes of that plan is to support the reserves of the Central Bank (BCRA).
In this context, through three contracts published in the Official Gazette this Monday, Three loans were made official that will promote this strategy. He Decree 545/2023, approves the concrete model between Argentina and the French Development Agency (AFD) for an amount of one hundred million euros. The decree 544/2023 It does the same with a disbursement of one hundred and fifty million euros from the European Investment Bank (EIB).
Likewise, the decree 545/2023 approves the model contract between the Government and the International Bank for Reconstruction and Development (IBRD) for two hundred million dollars. In total, the Government, the day after the general elections that resulted in the victory of Sergio Massa receives US$465,132,152.5 million.
The loan that the European Investment Bank (EIB) will be to finance the “Provincial Agricultural Services Program V – PROSAP V“.
PROSAP V is a rural development program that aims to improve productivity, marketing and value addition in Argentine agroindustrial production, with a focus on adaptation to climate change.
The EIB loan will be up to €150 million and will be used to finance three components of PROSAP V:
- Public Rural Infrastructure: construction and rehabilitation of rural roads, bridges, irrigation systems, etc.
- Support for agri-food modernization and competitiveness: technical assistance, training, development of new products and markets, etc.
- Management and Evaluation: monitoring and evaluation of the program.
In summary, the official text states:
- The EIB will provide a loan of up to €150 million to Argentina to finance PROSAP V.
- PROSAP V is a rural development program that aims to improve productivity, marketing and value addition in Argentine agroindustrial production.
- The Ministry of Economy will be the executing agency of PROSAP V.
- The President of the Argentine Nation is empowered to approve the Model Financing Contract and designate the Minister of Economy as representative of Argentina to sign the contract and agree on modifications to it.
The other disbursement
Meanwhile, the 100 million euro loan from the French Development Agency (AFD) will be to finance the “Federal Program for the Transportation of Electric Energy (PFTEE).”
The general objective of the Program is to contribute to the decarbonization of the electricity sector by reducing its greenhouse gas emissions and human development, through the expansion and modernization of electrical energy transmission systems.
The specific objectives of the operation are:
- Reduce the use of fossil fuel-based generation
- Increase electrical energy transmission capacity to meet new demand and inject renewable energy into the interconnected system
- Improve the reliability and efficiency of the electrical grid
- Promote the participation of women in the Program
The Program will be developed through three components:
- Investments in Sustainable Infrastructure
- Institutional Strengthening and Technical Studies
- Program Administration
The execution of the Program will be in charge of the Secretariat of Energy of the Ministry of Economy, through the Trust Fund for Federal Electric Transportation (FFTEF).
The World Bank loan
For its part, the loan of 200 million dollars from the International Bank for Reconstruction and Development to finance the “Project for Access to Sustainable Financing for Micro, Small and Medium Enterprises“.
The objective of the project is to promote access to sustainable financing for MSMEs, that is, financing that takes into account environmental and social impacts. The project will be divided into four parts:
- Strengthening the capacities of financial sector actors: Training and technical assistance will be provided to banks and other financial institutions to enable them to offer sustainable financial products and services to MSMEs.
- Access to sustainable financing for MSMEs: Loans and other financial instruments will be granted to MSMEs so that they can finance their productive activities.
- Project management: will be in charge of supervising and monitoring the project.
- Emergency Response Contingent (CERC): A fund will be allocated to respond effectively in the event of an eligible crisis or emergency.
The decree also authorizes the Minister of Economy to sign the loan contract with the Bank and to agree on modifications to the contract whenever do not constitute substantial changes in the purpose or destination of the funds.
In summary, the decree approves a loan of 200 million dollars from the agency to finance a project that aims promote access to sustainable financing for MSMEs.
Source: Ambito
