Sergio Díaz-Granados, president of the Development Bank of Latin America and the Caribbean, stated that the operation reflects CAF's confidence in the strength and direction of the country's financial policy
Thanks to this shield, Minister Luis Caputo has already achieved fundamental operational milestones for fiscal sustainability. Among them, the acquisition of international loans with rates lower than market rates, having already managed authorizations to operate with financial organizations for up to USD 5.000 billion.
At the beginning of July, the Government successfully closed operations for USD 3.200 billion, resources that were entirely allocated to honor commitments with bondholders totaling USD 4.300 billion.
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 CAF approved a guarantee of up to USD 250 million for Argentina
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.
The president, Javier Milei, and the Minister of Economy, Luis Caputo
The details of these market operations confirm the new business climate:
USD 2.000 billion was obtained through banks BBVA and Santander (New York branches), with the backing of BIRF and the MIGA agency.
This coverage from the World Bank reaches 95% of debt service payments, with a term of six years and a three-year grace period.
A loan of USD 1.200 billion was secured with Deutsche Bank, backed by the IDB's partial guarantee of up to USD 550 million.
As a direct result of this efficiency in financial management, the BCRA reserves recorded an increase of USD 1.264 billion in a single day, driven by the influx of these guaranteed loans. This flow of foreign currency not only ensures compliance with the program with the International Monetary Fund (IMF), but also paves the way for the definitive economic growth of Argentina under the ideas of freedom.
