World Bank Supports Argentina with $2 Billion Loan for Social Development

The World Bank offers Argentina over $2 billion in loans targeting social security, education, transport, and poverty alleviation. Announced by Carlos Felipe Jaramillo, the aid comes as President Javier Milei enforces austerity to combat inflation. Meanwhile, Argentina negotiates a new IMF program after surpassing targets.

The World Bank has announced plans to extend more than $2 billion in new loans to Argentina, directed towards social security, education, transport, and poverty reduction efforts. This development was revealed by Carlos Felipe Jaramillo, the World Bank's vice president for the Latin American and Caribbean regions.

The announcement coincided with Argentine Economy Minister Luis Caputo's attendance at the International Monetary Fund-World Bank summit in Washington. The South American country's economy continues to struggle under one of the highest inflation rates worldwide. Libertarian President Javier Milei is committed to maintaining fiscal discipline in the face of mounting poverty, now affecting over half of the population, and has pledged to veto any proposals that might disrupt the fiscal balance.

In parallel, Economy Minister Caputo, alongside Central Bank chief Santiago Bausili and Finance Secretary Pablo Quirno, is looking to negotiate a new agreement with the IMF. Argentina's government has reportedly met or exceeded several targets in its existing $44 billion arrangement, set to conclude later this year.

(With inputs from agencies.)