adding to a parallel guarantee under discussion with officials as the World Bank, as President Javier Milei’s government moves to refinance looming debt maturities.
The IDB announced Friday that it would provide financial support for Argentina, including guarantees aimed at facilitating access to private credit.
Milei’s government obtained the bank’s endorsement, which will contribute US$550 million to complement a US$2-billion guarantee currently being advanced with the World Bank, helping Argentina to meet upcoming debt payments.
The IDB, known locally by its Spanish-language acronym BID – also pledged to accelerate an agreed broader support package totalling some US$7.2 billion to be disbursed in 2026.
“New support for Argentina, this time from the IDB. This will allow us to refinance more expensive debt with cheaper debt, reducing the financial cost for all Argentines,” Economy Minister Luis Caputo said in a post on social media.
Caputo is currently in Washington, where he is attending the spring meetings of the International Monetary Fund, IDB and World Bank.
Argentina is working to assemble a large guarantee fund backed by international institutions that would refinance around US$4.3 billion in debt maturities falling due in July.
On Thursday, the World Bank confirmed it is “working on a guarantee of up to US$2 billion to help refinance a relevant portion of Argentina’s debt.”
In a statement on Friday, the IDB said it is “stepping up its support for Argentina with record financing for 2026 that could exceed US$7.2 billion.” This figure includes “the provision of a US$550-million guarantee to be added to those provided by other multilateral institutions.”
“The Argentine government and people have made a significant effort to stabilise the economy and advance reforms for growth,” said IDB president Ilan Goldfajn.
Both the IDB and World Bank guarantees remain subject to approval by their respective boards.
The overall plan includes more than US$5 billion in sovereign operations with the public sector, covering project financing as well as the US$550-million guarantee.
Meanwhile, IDB Invest, the group’s private-sector arm, expects to mobilise around US$2.2 billion in investments.
According to the institution, its 2026 programme will expand support through second-generation structural reforms, strategic provincial investments and direct financing for companies.
IDB Invest will prioritise strengthening social and productive infrastructure, improving access to healthcare services, supporting the digital economy and financing small and medium-sized enterprises. It will also back sustainable projects in agribusiness, export manufacturing and critical minerals such as lithium.
On the public-sector side, the focus will be on fiscal management, improving the quality of public spending and modernising the tax system. Funding is also expected for citizen security, justice and access to essential services including energy and social protection.
Argentina is also negotiating a separate guarantee fund with the CAF Development Bank of Latin America and the Caribbean, though the amount has not been disclosed.
Earlier this week, the International Monetary Fund approved the technical review of Argentina’s US$20-billion, 48-month programme signed in April 2025, under which the country has so far received US$14 billion. If ratified by the IMF board, the decision would unlock a further US$1 billion disbursement.
The IMF recently revised its growth outlook for Argentina, trimming its 2026 GDP forecast from 4 percent to 3.5 percent, while doubling its inflation projection from 16.4 percent to 30.4 percent.
– TIMES/AFP/NA
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