The World Bank has announced its commitment to bolster Argentina’s economy with more than $2 billion in new loans, targeting critical sectors like social protection, education, transportation, and energy. World Bank Vice President for Latin America and the Caribbean, Carlos Felipe Jaramillo, shared the news on X after a productive meeting with Argentina’s Economy Minister, Luis Caputo, in Washington, DC.
These funds are expected to support initiatives aimed at reducing poverty and improving access to essential services, especially for Argentina’s most vulnerable populations. According to World Bank sources, a significant portion—approximately $1 billion—will be allocated to improve transport and energy subsidies within the Buenos Aires Metropolitan Area. This funding is anticipated to go before the World Bank Board for approval by late November, with further projects related to literacy and nutrition set to follow in early December.
Economy Minister Caputo, attending the IMF-World Bank annual meeting in Washington, is also in talks with the Inter-American Development Bank (IDB), which is considering an additional $2.4 billion in public sector loans for Argentina. These discussions are part of Argentina’s broader strategy to reinforce economic stability and foster social welfare, despite a challenging economic climate marked by high inflation and widespread poverty.
President Javier Milei, known for his austerity-driven policies, is working to combat inflation, which the IMF forecasts will reach 45% in 2025. While Argentina’s GDP is expected to contract by 3.5% this year, growth projections for 2025 are more optimistic, pegged at 5%.
