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Argentina takes more than US$700 million in loans from CAF

August 19, 2022 – 10:00

The management of Sergio Massa in the Ministry of Economy has already begun to close loans with multilateral organizations to Argentina. In particular, through the CAF (Corporación Andina de Fomento) it was ensured a total of $740 millionsto which the Government plans to give it different purposes, although one region will capture most of it: Buenos Aires.

In fact, of the total funds that are channeled in 6 tranches, the bulk of u$d 415 million, go to a series of “basic” works between the AMBA (Metropolitan Area of ​​Buenos Aires, that is, City and Greater Buenos Aires). And also for school infrastructure.

Between the two programs, the fate of $340 million. According to the terms of the loan, they will go to the so-called “Program of Basic, Primary Works and Secondary Networks for the Metropolitan Area of ​​Buenos Aires”, with one peculiarity: the executing agency is AYSA (Buenos Aires Water and Sanitation), the state company chaired by the minister’s wife, Malena Galmarini.

While, another u$s 75 million will be allocated to the “School Infrastructure Improvement Program of the Province of Buenos Aires”. Three components are identified here: expansion and improvement of schools; “institutional strengthening” of the area of ​​management of school infrastructure and development of the information system”, and finally, the “administration, evaluation and monitoring” of said Program.

With a short-term liquidation, the Government agreed with CAF to return it in 15 years, with a 66-month grace to start paying.

Where does the rest of the loan go?

Through another channel, the Ministry of Economy closed a section for a program that until now seemed postponed: Argentina against Hunger. The Ministry of Social Development, as designated executor, will receive USD 100 million that, without discriminating the specific purposes, Argentina will be able to repay the Andean Development Corporation also in 15 years, after the first 30 months of the disbursement.

In addition, through another agreement, CAF undertakes to financially assist the Argentine Republic “in order to cooperate in the execution of the “Support Program for the Argentine Road System II”, for a total amount of $75,000,000. In this case, to be executed by the DNV (National Road Directorate), with a cancellation period of 15 years and a 36-month grace period.

Even agriculture will also receive resources. At least, the multilateral credit organization took the so-called “Program for the Recovery and Development of Agro-export Complexes”, which will be executed by the Ministry of Economy: it is an identical amount (75 million) which, with a grace period of 54 months, will be fully repaid in 15 years.

Likewise, the Government also secured funds for environmental management. Specifically, the credit agency rated the “Wide Sectoral Approach Project to Support Environmental and Climate Action in the Argentine Republic” for which the agreed disbursement is another US$75,000,000. The declared components: “protection, conservation and rational use of ecosystems”, in addition to the Circular Economy and a third item indicated as “Others”.

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