The Inter-American Development Bank (IDB) will grant Argentina a US$700 million loan to “strengthen the public finances” of the country.

This was announced by the organization, which highlighted that this money “will offer budgetary support so that Argentina covers its short-term financing needs and protects social spending on vulnerable groups and on infrastructure, while reforms are implemented to reduce the public deficit, promote price stability and ensure debt sustainability.

The IDB financing is aligned with the objectives of the Extended Service Program of the International Monetary Fund, which Argentina signed in March of this year, and will be complemented by financial assistance from other multilateral organizations.

The resources of the IDB loan “will support the efforts of the Government of Argentina in its reform program with the IMF,” the bank said in a statement.

At the same time, he pointed out that the credit will help strengthen public finances, assist efforts aimed at price stability and support the strengthening of the balance of payments.

The loan has an amortization term of seven years, a grace period of three and an interest rate SOFR, based on the average for guaranteed loans issued in dollars.