Economic crisis
World Bank supports Argentina with two billion dollars
Martin Guzmán, Minister of Economy of Argentina, speaks during a press conference. Photo: Paula Ribas/telam/dpa
© dpa-infocom GmbH
Last year, the World Bank supported Argentina with a record amount. Help is also announced for this year – due to the country’s ongoing economic problems.
In view of the severe economic problems, the World Bank is expected to support Argentina with two billion US dollars in the current year.
This was announced by the head of operations at the World Bank, Axel van Trotsenburg, on Tuesday after talks with Argentina’s Minister of Economics, Martín Guzmán. The money is to flow into projects in the areas of infrastructure, development, health and environmental protection.
Overcome the Covid crisis
“The World Bank is committed to supporting Argentina on its growth path and recovering from the impact of the Covid-19 crisis,” said Van Trotsenburg. “The bank’s support was critical in providing essential services to the poorest and funding the purchase of vaccines needed to protect lives and help revitalize the economy.”
Last year, the World Bank provided Argentina with a record $2.1 billion in aid.
The second largest economy in South America has been in a severe economic crisis for years. Argentina suffers from a bloated state apparatus, low industrial productivity and a large shadow economy that deprives the state of much tax revenue. The national currency, the peso, continues to depreciate against the US dollar, and the mountain of debt is constantly growing. The inflation rate last year was 50.9 percent.
This week, the International Monetary Fund (IMF) plans to announce the details of a new loan deal to restructure Argentina’s approximately $44 billion in debt to the fund.