The Minister of Economy, Sergio Massa, has agreed a financing line worth US$ 500 million with the Saudi Fund for Development. The objective of this agreement is to secure new funds in dollars to support the reserves of the Central Bank, especially during this election year and in response to the historic drought that has affected the country’s economy..
The loan will be used to finance infrastructure projects and it was signed by Massa and the CEO of the Saudi Fund for DevelopmentSultan Abdulrahman Al Marshad.
In principle, the funds will go to the health, food and energy sectors, including the Néstor Kirchner Gas Pipeline, electric transmission lines and provincial Sovereign Guarantee projects.
The head of the Economy portfolio worked on the management of this agreement with the Saudi government for several months and strategic financing priorities for projects in Argentina have been established, the agency reported. THAT. Massa also participated in G20 meetings with the Saudi Arabian Finance Minister to advance the Eximbank financing and the purchase of pipes for the Néstor Kirchner 2 and La Carlota-Tío Pujio pipeline.
It is financing is part of the financing strategy to ensure that the country can get through the year without complications. The drop in income due to the drought and the impossibility of obtaining more financing in the market has led the government to seek funds in this type of agreement. The objective of the economic delegation is to obtain at least 3,000 million dollars.
Other loans that Sergio Massa obtained
The Ministry of Economy confirmed the obtaining of a US$200 million loan from the Inter-American Development Bank (IDB) included in a line that provides a total financing of US$ 600 million, earmarked for investment and health projects.
However, the government seeks to expand financing from the Inter-American Development Bank (IDB), the World Bank and the Andean Development Corporation (CAF), and accelerate disbursements in programs already approved to alleviate pressures on the dollar and inflation.
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