In an effort to help Argentina’s struggling economy get access to global capital markets, the World Bank announced on Tuesday that it was providing guarantees to grant the country access to up to US$2 billion in commercial loans. Argentina, burdened by debt, faces private debt obligations exceeding US$4 billion that are set to mature in July. The new loan will have a six-year maturity, with a three-year grace period, according to the World Bank; however, further details regarding its conditions or the provider were not disclosed. President Javier Milei’s drastic programme of economic reforms has garnered market approval and facilitated the nation’s re-entry into private capital markets.
The World Bank guarantees will cover 95 percent of the debt service payments under the commercial loan, “enabling Argentina to lower borrowing costs and strengthen public debt management,” the multilateral lender said in a statement. “We are committed to supporting Argentina’s macroeconomic stabilisation and growth reform agenda,” stated Susana Cordeiro Guerra. “This innovative guarantee structure helps bridge the country’s return to international capital markets, mobilising financing on more affordable terms while supporting reforms that boost private investment, productivity, and long-term resilience,” she said.
Fitch and S&P have recently upgraded Argentina’s credit rating to ‘B-‘, highlighting the nation’s enhanced fiscal situation and advancements in reform efforts. Argentina’s external position has shown notable improvement in recent months, driven by a surge in energy prices that underscores its role as a net energy exporter. Its first-quarter trade surplus reached a historic US$5.5 billion. In May, the board of the International Monetary Fund finalised its most recent assessment of the country’s US$20-billion program, thereby releasing US$1 billion in disbursements.