Thursday March 30, 2023 | 1:56 p.m.
The Inter-American Development Bank (IDB) authorized the designation of a new credit for Argentina valued at 150 million dollars, to promote social integration and improve housing conditions for vulnerable households.
The new grant is executed after the Minister of Economy, Sergio Massa, joined the delegation that accompanied President Alberto Fernández on his trip to Washington to hold a bilateral meeting with his North American counterpart, Joe Biden.
On that trip, the head of the economic portfolio met with the president of the international organization, the Brazilian Ilan Goldfajn, to plan the disbursements for the next semester. This credit support is an option that the IMF technical team considered in the evaluation of the fourth quarter of 2022, published BAE.
According to studies carried out by the credit institution, there are 45% of Argentine popular neighborhoods that are located in areas exposed to environmental risks. It is for this reason that the loan is aimed at developing climate vulnerability information processing systems.
The objective is the creation and improvement of housing in vulnerable homes with a focus on energy and environmental sustainability. In addition, housing solutions with a gender focus will be created and connections to public services will be improved.
Booster
It is estimated that the new loan will reach more than eight thousand homes in popular neighborhoods and “intends to strengthen the institutional management capacity of aspects such as informal settlements to prevent the growth of these or the formation of new ones,” the IDB detailed through of a statement.
“The authorities continue to mobilize official financing from multilateral and bilateral sources,” the organization assured, and continued: “These efforts will help maintain direct monetary financing of the fiscal deficit to a maximum of 0.6 percent of GDP in 2023, in line with the objectives of the program.
Argentina went through the most serious drought since 1929, a problem that altered the decline in income from export duties. That is why the agency’s credits mean a great income tool for the Government.
In mid-March, the minister at the IDB Assembly in Panama stated that “in 2023 we aspire to exceed the rate of disbursements and we are negotiating a series of additional credit lines, perhaps the most important with the IDB, related to the drought”.
