The Minister of Economy, Luis Caputo, advanced in Washington on a central strategy for financial stability. He met with Ajay Banga in the framework of the meetings of the International Monetary Fund and the World Bank
.The result was concrete. The World Bank confirmed that it is working on a guarantee of up to USD 2 billion to assist Argentina in refinancing its foreign debt
.Key international support for Milei's strategy The
organization highlighted its support for the reforms promoted by the government of Javier Milei. According to the official statement, the guarantee will reduce financing costs and improve conditions for attracting investment.
The operation must still be approved by the Executive Board. However, it represents a significant step forward in the negotiations.
The objective is clear. Obtain external financing without putting pressure on the Central Bank's reserves
.How the guarantee mechanism works
The scheme does not involve a direct disbursement of money. This is a “credit improvement” system.
In this model, multilateral organizations act as guarantors against private banks. This reduces the risk perceived by investors
.
In this way, Argentina can access much lower rates. The Government is seeking funding close to 5%, well below what the market would demand
.In addition, the mechanism has a multiplier effect. For every guaranteed dollar, two or three dollars of private financing can be mobilized
