The Economy Minister will receive a loan to contain the fall in reserves. “An investment for infrastructure will be made for the first time,” he explained.
By iProfessional
13/04/2023 – 21,20hs
The Minister of Economy, Sergio Massaagreed this afternoon on a line of $500 million financing from the Saudi Fund for Development. In this way, it will add a good amount of dollars to contain the fall in the Central Bank’s (BCRA) reserves during the electoral year and in view of the decrease caused by the historic drought.
The loan, according to official sources, will be used to finance infrastructure works and was signed by the Minister of Economy Sergio Massa and Sultan Abdulrahman Al Marshad CEO of the Saudi Fund for Development.
Massa closed a loan with the Saudi Fund for Development: for what purpose?
The financing of the Saudi Fund signed this Thursday will be directed to the sectors of food health and energy, among which the Néstor Kirchner Gas Pipeline stands out. Likewise, among the projects included, the financing of electrical transmission lines and provincial Sovereign Guaranteed projects stands out.
“We closed a memorandum of understanding and In this first operation, some US$500 million will arrive for infrastructure. It is something that we have been negotiating since February, we cultivate a very good relationship,” they confirmed from the Palacio de Hacienda.
In his official Twitter account, the head of the economic portfolio explained: “Together with Sultan Abdulrahman Al Marshad, CEO of the Saudi Fund for Development, we signed an agreement through which they will make an investment for infrastructure in our country for the first time for 500 million dollars.”
The announcement was made within the framework of the negotiations that the minister has been carrying out with the Saudi government and after the trip that representatives of the SFD made to Buenos Aires, last January, with the objective of knowing the requirements and agreeing on project financing priorities. strategies of Argentina.
???????????????? Together with Sultan Abdulrahman Al Marshad, CEO of the Saudi Development Fund, we signed an agreement through which they will make an investment for infrastructure in our country for the first time for 500 million dollars. pic.twitter.com/qcGRaxJ3fr— Sergio Massa (@SergioMassa) April 13, 2023
This Thursday, the head of the Palace of Finance also met during the G20 meetings with the Finance Minister of Saudi Arabia, Mohammed al-Jadaan, with whom he had already held a meeting in the framework of the G20 summit held in the India in February where negotiations began. On this occasion, the purchase of tubes for the Néstor Kirchner 2 Gas Pipeline (second section) and La Carlota-Tío Pujio advanced with financing from Eximbank.
This loan added to the faster disbursement agreements with international organizations that the economic team has been closing are part of the financing strategy to get through the year without complications. Given the significant drop in income due to the drought, and the impossibility of accessing more financing in the market, the Government will use this type of agreement more than ever to obtain the greatest possible financing. In principle they aim to get about 3,000 million dollars.
In addition to these funds, the Government intends to expand financing from the Inter-American Development Bank (IDB), the World Bank and the Andean Development Corporation (CAF), and accelerate disbursements in programs that have already been approved in their crusade to alleviate pressure on the dollar and inflation.
This morning the Government confirmed a loan of US$ 200 million from the Inter-American Development Bank (IDB) included in a line that provides for a total financing of US$600 million, which will be allocated to investment and health projects, according to the Ministry of Economy.
