World Bank to provide $2 billion loan to Argentina

The World Bank has approved a financing package to reduce Argentina's financing costs and strengthen public debt management. The organization said in a statement on Tuesday (June 16) that the initiative has approved a $2 billion financing package for the country as a commercial loan.

According to the World Bank, the financing plan combines two guarantees. The first is a policy-based guarantee from the International Bank for Reconstruction and Development (IBRD) and the second is a guarantee from the Multilateral Investment Guarantee Agency (MIGA).

The organization said that the commercial loan taken under this guarantee will have a term of six years. The first three years of this will be a grace period or a period of grace for repayment of the loan. According to the World Bank, this financing package will help Argentina raise funds from international financial markets at a relatively low cost and will contribute to more effective public debt management.

Incidentally, inflation has been rising in Argentina since the Corona pandemic as dollar reserves have hit rock bottom. In 2024, the inflation rate reached 100 for the first time in the country's history. As a result, the people in the country are gasping for breath due to the unbridled skyrocketing prices of various daily necessities including food, medicine, and fuel.

Source: Reuters