(Reuters) – The World Bank and the Inter-American Development Bank (IDB) will provide Argentina with an $8.8 billion loan, South America’s economy ministry said on Wednesday, as the cash-strapped government steps up support from major financial institutions.
The announcement followed a meeting in Washington this week between senior officials, including Economy Minister Luis Caputo, and international financial institutions, as Argentina’s government works to reverse a prolonged economic downturn.
The World Bank’s loans in the coming months will cover $2 billion and will be used for social spending such as education, transport and electricity for the poor, the statement said.
Over the next few years, financial institutions’ financing of private sector initiatives will provide $3 billion in financing for projects in mining, renewable energy, health, steel, aviation, and more.
Meanwhile, IDB funding includes more than $2.4 billion for governments, which should help finance additional social spending that also focuses on the poor, such as education and energy services, the statement said. said.
Support from the IDB will also boost the private sector, with an additional $1.4 billion over the next two years.
(Reporting by Kylie Madrid; Editing by Anthony Esposito)
