World Bank approves $2 billion guarantee for Argentina to aid debt financing

The World Bank and its Multilateral Investment Guarantee Agency (MIGA) have approved a package of guarantees worth US$2 billion for Argentina. The guarantees will cover about 95 % of the service payments on a new commercial loan, which will have a six‑year term with a three‑year grace period. The structure is intended to lower financing costs, strengthen public‑debt management and support reforms aimed at job creation, infrastructure investment and financial inclusion for small firms.

President Javier Milei met World Bank officials, including Vice President for Latin America and the Caribbean Susana Cordeiro Guerra, at the Quinta de Olivos shortly after the approval. Economy Minister Luis Caputo said the arrangement will allow Argentina to borrow at interest rates “substantially lower than the market rate, representing a significant saving for all Argentines.” Cordeiro Guerra added that the “innovative guarantee structure contributes to facilitating the country’s return to international capital markets.”

The guarantee comes as Argentina’s sovereign risk premium fell to around 425‑435 basis points, the lowest level in eight years, and the government prepares for upcoming foreign‑currency debt maturities in July and 2027. The package complements other multilateral support, including a US$500 million guarantee from the Inter‑American Development Bank to mobilise up to US$1.2 billion for security and justice reforms, and pending financing from the IDB and CAF.