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why the funds are not useful to get out of the trap

why the funds are not useful to get out of the trap
why the funds are not useful to get out of the trap

The international organization confirmed the disbursement that had been anticipated by President Javier Milei last week. However, the financing cannot be used to fulfill one of the main campaign promises.

In line with what was anticipated by the president Javier Milei during the past week, since world Bank They confirmed that They will lend the country more than US$2,000 million. However, These funds will only be received in 2025 and they cannot be used to get out of the stocks, but rather for projects that help reduce poverty.

Representatives of the international organization, led by the Indian-American businessman Ajay Bangaassured that they are not going to offer direct assistance to the National Treasury but rather that The financing will be allocated to programs linked to issues such as education, social protection and early childhood development., in order to mitigate the impact of the crisis on the most vulnerable sectors. The bank’s board will begin discussing some of these initiatives in the new fiscal year that begins this month.

The World Bank will grant US$2,000 million to Argentina

Some days ago Milei He celebrated the proximity of this disbursement on his social networks and highlighted that the amount is “far outside the conventional parameters of the institution.” In fact, in recent years only four projects financed by the World Bank exceeded US$2 billionalthough it is worth noting that next year’s money will not correspond to a single project but to several.

Despite the significant amount of aid, The money cannot be used to support the release of capital controls in the exchange market, one of the most important campaign promises of the Libertarian Government.

Javier Milei.jpeg

Milei had advanced the transfer of funds from the World Bank.

Milei had advanced the transfer of funds from the World Bank.

Additionally, in an interview on TN, the head of the Executive Branch said that the organization will announce a “very strong” commitment to Argentina the day after the signing of a new agreement with the International Monetary Fund (IMF)although the bank denied that both issues are linked.

According to data from the Ministry of Economy, The World Bank currently has a stock of loans in Argentina greater than US$9.7 billionhighlighting the financing of the Universal Child Allowance (AUH) within this total.

On the other hand, the entity presented this week a special report with keys for Argentina to achieve sustained growth in the medium and long term. In his economic projections for the region, he warned that this year the Argentine economy will fall by 3.5%, in line with the new estimate of the IMF, but it foresees a significant rebound in 2025.

Source: Ambito

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