Argentina - Enabling Private Sector Investment and Growth for Job Creation Development Policy Financing Project : Chair Summary

Overview & Synopsis

The Executive Directors approved an International Bank for Reconstruction and Development Policy-Based Guarantee (PBG) to support Argentina’s return to global capital markets by mobilizing private commercial financing at reduced cost in coordination with the International Monetary Fund Extended Fund Facility, employing a first-loss IBRD guarantee and a second-loss Multilateral Investment Guarantee Agency Non Honoring of Sovereign Financial Obligations that together cover up to 95 percent of commercial loan cashflows and leverage World Bank Group balance sheets. Directors acknowledged progress under the stabilization program but noted high risks and emphasized the need to sustain momentum on structural reforms while focusing on formal job creation, effective social protection for the most vulnerable, fiscal discipline and durable reserve accumulation, and reinforced environmental and social risk management given the energy and mining oriented growth strategy, in order to underpin sustainable, broad-based growth and market access.