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World Bank to loan Argentina over $2 billion for social support

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BUENOS AIRES (Reuters) -The World Bank is prepared to provide Argentina with more than $2 billion in new loans destined for social security, education, transport, energy and battling poverty, the multilateral lender’s regional vice president said on Tuesday.

Carlos Felipe Jaramillo, who heads the World Bank’s Latin American and Caribbean division, made the announcement on X as the country’s economy minister attends the International Monetary Fund-World Bank summit in Washington.

The government of libertarian President Javier Milei is battling one of the world’s highest inflation rates with a tough austerity drive that has slowed economic activity and pushed up poverty well past 50%.

Milei has vowed to veto any law that threatens the fiscal balance, including recent legislation that looked to shore up university funding in line with inflation, fuelling mass protests.

Economy Minister Luis Caputo traveled to Washington for the summit with Central Bank chief Santiago Bausili and Finance Secretary Pablo Quirno, alongside other officials.

He has said the South American nation is going to start negotiating a new program with the IMF after over-achieving several targets in its current plan. The current $44 billion agreement ends later this year.

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