Beyond the immediate financial contribution, the agreement reinforces the confidence in the sustainability of the program and marks another step in the official strategy of stabilization, opening and structural reorganization of the Argentine economy.
In line with the objectives set since December 2023, the Government approved on Monday the contract model corresponding to the loan BIRF 9814-ARfor an amount of US $ 1,500 milliongranted by the International Bank for Reconstruction and Development (BIRF), one from the institutions that make up the World Bank Group. The purpose of the financing is to strengthen fiscal sustainability, promote commercial competitiveness and protect the most vulnerable sectors.
He Decree 270/2025 Posted in Official Gazette It details that the funds are intended for the program “Financing of Development Policies for Fiscal Sustainability and Competitiveness”, which is part of the general strategy of the Government to stabilize the economyreduce distortions and reactivate productive investment.
“Since the beginning of its management, the National Administration has focused its economic policy on two fundamental axes: the consolidation of macroeconomic stability and the elimination of structural restrictions that prevent the normal functioning of the markets. In that context, the Government advanced with a severe tax adjustment that achieved a significant reduction in public spending and a deceleration of inflation,” the text states.
Institutional loan and support conditions
The agreement with the BIRF was evaluated favorably by the National Public Credit Office, which highlighted the low financial cost of the credit against other external financing alternatives. Likewise, the Central Bank of the Argentine Republic estimated that the impact on the balance of payments will be limited and consistent with the current macroeconomic projections.
For the disbursement of the funds, the World Bank demanded compliance with a matrix of previous actions linked to the macroeconomic system and the implementation of structural policies. The maintenance of an adequate economic policy will also be essential condition to release resources.
The execution of the loan will be in charge of the Ministry of Economy, through the Ministry of Finance, which was authorized to sign the contractual documentation and make minor modifications, provided they do not alter the object, the amount or the substantial conditions of the contract.
A new international support in full transition from the exchange scheme
The agreement with the World Bank is formalized at a key moment of the economic program, just when the government is about to implement a new exchange regime, with the lifting of a good part of the restrictions of the stocks and the adoption of a unique reference change rate. Within this framework, multilateral financing becomes an additional tool to reinforce the credibility of economic policy and sustain the macroeconomic normalization process.
Source: Ambito
