The president of the Inter-American Development Bank (IDB), Ilan Goldfajn, announced that the entity would provide USD 3.8 billion in loans to Argentina, with the aim of supporting the public and private sectors. In a column published in the Financial Times, Goldfajn explained that the IDB will complete payments of $2.4 billion to the public sector this year, while IDB Invest, the branch focused on the private sector, will allocate another man. USD 1.4 billion for private projects in the next two years.
Goldfajn, former president of the Central Bank of Brazil, He emphasized in his article that economic reforms are essential for Argentina to overcome its repeated crises, saying that a more efficient public sector and a dynamic private sector are needed to create opportunities and be an engine for economic growth.
In his analysis, Goldfajn highlighted the progress of the government led by President Javier Milei, which has taken significant steps to restore fiscal balance. Since the start of his administration, Milei managed to go from a deficit of 2.9% of GDP at the end of 2023 to a surplus of 1.5% at the end of August 2024, a remarkable development in just seven months.
To achieve this goal, the government has taken measures such as subsidy reductions, changes in public spending, cuts in infrastructure and transfers to the regions, as well as increases in rates and implementation of special taxes.
Goldfajn emphasized the importance of an alliance between the public and private sectors to revive the Argentine economy. For the head of the IDB, the country must create clear incentives that encourage private innovation and job creation, which requires an effective regulatory framework that will attract investments.
In this context, Goldfajn referred to the regulatory reforms promoted by Federico Sturzenegger, Minister of Deregulation and State Change, which includes the “Leaf Law”, designed to eliminate unnecessary regulations and create a favorable business environment.
The IDB is committed to this process, offering funding to support the efficiency of public spending in areas such as energy subsidies and social protection, as well as the development of projects in key sectors such as agribusiness, energy and mining.
Argentina, according to Goldfajn, is in a strategic position to take advantage of the opportunities that arise from global challenges, such as food security and energy transition. The country is a major exporter of agricultural products and has large reserves of lithium, making it a major player in the supply chain of critical minerals.
2024-10-13 23:02:00
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