In a resounding endorsement of President Javier Milei's management, the CAF (Development Bank of Latin America and the Caribbean) has reaffirmed the course of economic freedom by approving a sovereign risk guarantee of up to USD 250 million for the Argentine Republic.
This decision, made by the CAF Board, adds to the new financing architecture that the Ministry of Economy, under the leadership of the Secretariat of Finance, is deploying to normalize the country's credit situation.
The executive president of the CAF, Sergio Díaz-Granados, was explicit in validating the libertarian program: “The operation reflects CAF's confidence in the solidity and direction of Argentina's financial policy”. According to the official, this tool will allow “to expand fiscal maneuvering space, diversify funding sources, and mobilize private investment under more favorable conditions”.
For his part, the Argentine vice president of the organization, Christian Asinelli, recalled that the entity has been a systematic ally, having previously granted two bridge loans totaling USD 1.970 billion between 2022 and 2023 to avoid default with the IMF inherited from the previous administration.
From a technical perspective, the government is maximizing the “multiplier effect” of these partial credit guarantee tools. The goal is for each dollar backed by a development bank to attract third-party capital and strengthen market confidence, allowing capital to yield “well above” the organization's own balance.
This coordinated support scheme also includes the World Bank, with a monumental guarantee of USD 2.000 billion, and the Inter-American Development Bank (IDB), which contributed USD 550 million.
