The Inter-American Development Bank (IADB) has confirmed that Argentina has paid US$770mn of arrears, re-establishing a normal relationship with the bank, and enabling the IADB to continue to disburse funds for loans, and submit to its board of executive directors new financing operations.
Economy Minister Roberto Lavagna sent a letter on January 15 to the bank advising that the country would temporarily fall behind on some payments until issues restricting public sector financing were resolved.
The IADB welcomes Argentina’s ongoing efforts to resolve its financial crisis, and reiterates its willingness to co-operate, particularly in ensuring the continuity of social programs that provide assistance to the most vulnerable sectors of the population, as the bank did during 2002.
The IADB disbursed US$422.4mn to Argentina during 2002, and it expects to present to the board of executive directors for their approval a proposed loan of US$1.5bn to support a social protection programme.
Also under consideration is a second phase of this operation, as well as the reformulation of other loans for the productive sectors, financial services and support of the Federal Pact. As operations for Argentina proceed, disbursements will continue for social programmes that were reformulated last year into a US$694mn operation.