World Bank approves $2B guarantee-backed financing for Argentina

Key facts

• The World Bank Group approved a guarantee-backed financing package for Argentina.
• The package aims to mobilize up to $2 billion in commercial loans.
• The financing is intended to reduce Argentina's financing costs and strengthen public debt management.
• The package includes guarantees from the IBRD and MIGA.
• The commercial loan has a six-year term and a three-year grace period.

The World Bank Group has approved a guarantee-backed financing package designed to mobilize up to $2 billion in commercial loans for Argentina. The initiative aims to lower the country's financing costs and enhance its public debt management capabilities. The financing structure incorporates two guarantees: one policy-based guarantee from the International Bank for Reconstruction and Development (IBRD) and another from the Multilateral Investment Guarantee Agency (MIGA). The associated commercial loan will have a six-year maturity, including a three-year grace period.