Inter-American Development Bank (IADB) President Enrique Iglesias and Guillermo Zoccali Argentine executive director at the International Monetary Fund have signed the documents for the reformulation of US$250mn in fast-disbursing financing to Argentina that will allow for the immediate disbursement of US$125mn.
The disbursement will be made in recognition of the advances achieved by Argentine authorities in several areas such as strengthening the regulations and supervision of the insurance sector with a risk-based approach, cancelling significant debts that the Instituto Nacional de Reaseguros had with the private sector, and codifying the Transparency Decree that establishes new standards of corporate governance for publicly traded companies.
The reformulation of the operation approved today by the IADB board of executive directors indicates the IADB’s continuing confidence in the country’s ongoing economic recovery and stabilisation.
The US$250mn financing was originally part of a US$500mn fast-disbursing loan to Argentina approved in 2001 to support financial sector reform in the areas of pensions, insurance and capital markets.
Because of a crisis in late 2001 that complicated the adoption of some policies, part of the program could not be carried out, and only half the funds were disbursed.
The reformulated programme objectives include to provide greater stability to the pension system and institute more rigorous supervision, enhance transparency and competition in the retirement insurance industry, as well as reduce costs and improve competition and efficiency of private pension