The World Bank Group has approved an innovative financing package designed to support Argentina’s economic reform programme and help the country regain access to international capital markets.
The package combines guarantees from the World Bank and the Multilateral Investment Guarantee Agency (MIGA) to mobilise up to $2 billion in commercial financing. The initiative aims to reduce borrowing costs while supporting reforms focused on economic growth, job creation and private sector investment.
The financing structure includes a first-loss Policy-Based Guarantee from the International Bank for Reconstruction and Development (IBRD) and a second-loss guarantee from MIGA. Together, the guarantees will cover 95 percent of debt service payments under the commercial loan, improving financing conditions for Argentina.
According to the World Bank Group, the package is intended to strengthen public debt management while supporting reforms that encourage private investment, improve productivity and enhance long-term economic resilience.
The programme will also support measures aimed at attracting infrastructure investment, strengthening market competition and improving access to finance for small and medium-sized businesses. These reforms are expected to help create a more favourable environment for business growth and employment.
The commercial loan backed by the guarantees will have a six-year maturity period, including a three-year grace period, providing Argentina with additional flexibility as it continues its economic recovery efforts.
World Bank officials described the transaction as an example of how innovative financial instruments can help developing economies access more affordable financing while advancing key policy reforms. The initiative also highlights the growing role of the World Bank Group Guarantee Platform, which was launched in 2024 to expand investment opportunities and reduce risks for investors in emerging markets.
By combining public guarantees with private capital, the financing package seeks to support Argentina’s economic stabilisation efforts and strengthen its path toward sustainable growth and increased investment.
