The organization chaired by Ilan Goldfajn plans to strengthen its presence in the country during the administration of Javier Milei, with a focus on more investment projects, tax reforms, spending efficiency and productive development.
The president of Inter-American Development Bank (IDB), Ilan Goldfajnassured that the organization will increase its level of activity in Argentina during 2025within the framework of the triannual financing program by up to US$10,000 million which was announced in April.
In dialogue with Bloomberg Linethe Brazilian economist highlighted that The IDB has already approved operations for about US$4,000 million this yearalthough he clarified that effective disbursements depend on the nature of each project. “Next year we plan to have a significantly more robust programming than we have this year in investment projects,” Goldfajn said.
A three-year program of US$10 billion
The scheme agreed between the IDB and Argentina contemplates US$7 billion in sovereign loans and US$3 billion channeled through IDB Invest, with the aim of promoting private investment and supporting strategic productive sectors.
For the first year of the program, US$3,000 million in public financing and US$1,000 million were projected for the private sector, figures that coincide with those mentioned by the head of the organization.
Goldfajn highlighted that joint work with the country is already underway and that the relationship focuses on the structural reform agenda promoted by Javier Milei’s administration, with axes in the efficiency of public spending, tax reform and the reduction of subsidies.
Dollars
The IDB plan
To ensure that Argentina becomes a model of sustained economic growth led by the private sector, the IDB program is based on three pillars:
Reforming the system towards efficiency and sustainability
It is planned to work on the following objectives:
- Increase the efficiency of the tax system and its administration,
- Reduce tax distortions and improve collection efficiency;
- Improve the efficiency, equity and sustainability of fiscal policy, reducing tax spending, increasing the technical and allocative efficiency of public spending. This pillar will focus on working with national and subnational governments.
The IDB’s support adds to the set of financial initiatives that the Milei Government seeks to consolidate. This week, the US Treasury Secretary Scott Bessentconfirmed that it is negotiated a new line of credit for US$20,000 million for Argentina, which would function as complement of the swap of the same amount in force with private banks and sovereign funds. The most recent US Treasury intervention in the Argentine market occurred this week, with a direct purchase of pesos aimed at containing exchange rate volatility before the legislative elections on October 26.
Source: Ambito
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