The operation, supported by the World Bank and MIGA, will cover 95% of the service of a new commercial loan and aims to reduce financing costs within the framework of Javier Milei's economic program
This diplomatic and financial triumph occurs in a context of euphoria in the markets. Thanks to the management of Luis Caputo, the country risk has plummeted to 425 basis points (b.p.), reaching its lowest level in the last eight years. This vertical drop from 520 basis points (b.p.) in April has been driven by the improvement in the debt rating by Standard & Poor's, which jumped from CCC+ to B-.
In a definitive boost to the policy of macroeconomic stabilization, the board of the World Bank and the Multilateral Investment Guarantee Agency (MIGA) approved on Tuesday a monumental guarantee package of USD 2 billion for Argentina under Javier Milei. This measure, of absolute strategic relevance, is designed to facilitate the country's return to international markets, consolidating the confidence that the world has placed in the national government's reform plan.
The operation is of indisputable technical solidity: it will guarantee 95% of the debt service payments of a new commercial loan. This excellent structure will allow for reducing financing costs and masterfully strengthening public debt management. The scheme combines a policy-based guarantee from the International Bank for Reconstruction and Development (IBRD) and one from MIGA, focusing on job creation, attracting infrastructure investments, and financial inclusion.
The technical details reflect the unbeatable conditions obtained: the commercial loan will have a six-year term and a generous three-year grace period. In this regard, the vice president of the World Bank for Latin America and the Caribbean, Susana Cordeiro Guerra, praised Argentina's commitment, stating that: “this innovative guarantee structure helps facilitate the country's return to international capital markets, mobilizing financing under more accessible conditions, while supporting reforms that drive private investment, productivity, and long-term resilience.” To seal this success, the official will hold a key meeting tomorrow with the Minister of Economy, Luis Caputo.
For his part, Junaid Kamal Ahmad, vice president of Operations at MIGA, highlighted that this operation will generate significant savings and attract investments that will elevate the quality of life for all Argentines.
The meticulously planned strategy has already allowed for the closure of the financial program for 2026. As explained by the Deputy Minister of Economy, José Luis Daza, Argentina's solvency is such that the sources of financing are already fully identified.
In addition to the USD 2 billion from MIGA and the World Bank, the country will receive in the coming days the backing of the Inter-American Development Bank (IDB) for USD 550 million and, by the end of July, from the Development Bank of Latin America and the Caribbean (CAF) for an amount between USD 250 and USD 500 million. With the new World Bank Group Guarantee Platform, Argentina positions itself at the forefront of developing nations, demonstrating that the path of economic freedom is the only way to global success.
