Milei secures new loans totaling USD 1.5 billion from the IDB and the World Bank

Javier Milei's government approved three international loans totaling USD 1.5 billion, granted by the Inter-American Development Bank (IDB) and the International Bank for Reconstruction and Development (IBRD), an institution that is part of the World Bank Group.

Decrees 488, 489, and 490 published in the Official Gazette were signed by the president, Chief of Cabinet Guillermo Francos and Minister of Economy Luis Caputo. The decrees authorize the signing of the corresponding contracts and empower the designated officials to carry out the negotiations.

How the funds will be distributed

Of the three approved loans, two correspond to the IDB: one for USD 800 million intended for the "Fiscal Policy Strengthening Program II," and another for USD 400 million to finance the "Regulatory Reform Support Program for Competitiveness." The third, for USD 300 million, will be signed with the IBRD for the "Tax Administration Services Modernization Program."

This last one will be executed by the Ministry of Economy with technical assistance from the Revenue and Customs Control Agency (ARCA), with the aim of improving the efficiency, transparency, and effectiveness of the national tax system.

Favorable conditions compared to the market

According to the report from the National Public Credit Office, the financial conditions of the loans—interest rates, terms, and contractual clauses—are more favorable than those Argentina could obtain today in the international market.

The Central Bank, meanwhile, concluded that the impact on the balance of payments will be limited and consistent with the projected dynamics for external operations.

Part of a broader strategy

The financing is part of the government's strategy to reduce the fiscal deficit, organize public spending, and modernize the functioning of the State without compromising local resources.

In addition to these loans, another agreement recently formalized with the IBRD for USD 230 million aims to improve employability through integrated training and workforce development programs.