19/11/2004 |

The Inter-American Development Bank today announced the approval of an $18 million loan to Argentina to help strengthen the institutional investment environmen

The Inter-American Development Bank today announced the approval of an $18 million loan to Argentina to help strengthen the institutional investment environment, particularly in the relatively less developed provinces, by building the capacity of their non-financial public institutions linked to the productive sectors and integrating the provincial public expenditure management systems.          

The program aims at contributing in the medium and long term to the gradual consolidation of mechanisms for interaction between the federal government, the provinces and the productive sectors.

“Efficient management is key to improving the performance of public services,” said IDB team leader Hector Salazar. “Integration and management of public expenditure systems that enable national and provincial financial data to be aggregated and to facilitate compliance with fiscal rules and restrictions is essential to improve the timeliness and integrity of data systems and to standardize basic data classifications,” Salazar added. “Undoubtedly, both dimensions contribute to the perception of good government.”

This program, which will be executed by the Provincial Relations Branch of the Ministry of Economy Finance Secretariat, will complement ten years of previous efforts to improve fiscal relations between the federal government and the provinces and will help achieve continued fiscal discipline in the provinces.

The loan is for a 20-year term with a five-year grace period at a variable interest rate. Local counterpart funds total $12 million.

Related stories

  • HASAN TULUY: Now is not the time for LatAm to relax

    As the world economy moves to a ‘new normal’, Latin America must not sit back and relax but instead focus on boosting sustainable growth and eradicating inequality

  • Magical economic realism alive and well in Venezuela

    Venezuela’s annual inflation hit 57.3% in February, but a group of chamber of commerce leaders defied experts’ analysis to present a bullish case for investment in the country

  • COLOMBIA: Freeing up Colombia's economy

    In the enviable position of boasting low inflation as EM currencies tumble, Colombia appears well placed to withstand the shocks of changing global monetary policy. But for the economy to make sustainable strides, long-term improvements are needed – starting with infrastructure

  • Busan 2015: Korea trade key to venue choice

    The decision by the IDB to site its 2015 annual meetings in South Korea highlights the region’s desire to build on a fast growing trade and business relationship

  • Colombia to inject up to $25bn into economy

    The first investment package of $8bn for 12 roadway projects would be offered in April, Colombia's finance minister said

Editor's Picks

In Focus

  1. BRAZIL: Rousseff running out of time to restore economic credibility

  2. FINANCING LATAM’S BANKS: Niche currencies lead the way for LatAm exposure

  3. US QE tapering a good sign but watch the short end…

  4. JIM O'NEILL: Latin America can learn from Mexico’s efforts

  5. LATIN AMERICA: Filling the infrastructure financing gap