The World Bank Group has given approval for US$1.5 billion in financing directed at Argentina to advance policy measures promoting private sector-driven growth and job creation, with a focus on safeguarding vulnerable populations. The financing falls under the World Bank's Development Policy Financing (DPF) initiative, which allows for swift disbursement and is aligned with Argentina's reform objectives and development aspirations.
Argentina is pursuing an ambitious reform agenda aimed at modernizing its economy and cutting bureaucratic red tape, all while protecting vulnerable groups. According to the World Bank, these reforms are critical steps in realizing the country's potential.
The financing strategy is structured around two main pillars. The first pillar focuses on enhancing fiscal sustainability and safeguarding vulnerable populations. This includes improving social transfer programs to better support households in need, making the tax system more progressive, and streamlining energy subsidies. The second pillar is about boosting trade and investment competitiveness, aiming to enhance agro-industrial productivity, promote competitiveness, attract investment, facilitate trade, and encourage private sector investment.
This financing is part of a sizable US$12 billion package, also announced today, which highlights the World Bank's commitment to supporting Argentina's reform journey and enabling long-term economic growth and job creation in the country. The package's implementation depends on approval from the World Bank’s Board of Executive Directors and is set to unfold over the next three years. This initiative forms part of a broader international cooperation effort that includes contributions from the International Monetary Fund and the Inter-American Development Bank.
Contact for further details are available with Yanina Budkin in Buenos Aires and Yuri Szabo Yamashita in Washington.