Argentina

            First Inclusive Growth Programmatic Development Policy Financing
                                            and
                            Children and Youth Protection Project

                                        Chair Summary*

                                       November 1, 2018

The Executive Directors approved a loan to the Argentine Republic for a First Inclusive Growth
Programmatic Development Policy Financing (DPF) in the amount of US$500 million and a loan
for an additional financing for the Children and Youth Protection Project in the amount of US$450
million on the terms and conditions set out in the respective Memoranda to the President.

Directors endorsed the World Bank’s support to Argentina’s economic and social program through
the two loans. They welcomed the policy focus of the DPF, namely: (i) strengthening the
foundations for private sector-led growth, and (ii) strengthening the social safety nets and
enhancing fiscal equity.

Directors stressed the importance of complementarity with the IMF’s Stand-By Arrangement and
noted the importance of close cooperation between the Bank and IMF during implementation.
They emphasized the need for continued structural reforms, stronger private sector-led growth and
ensuring that public debt is on a downward trajectory.

Directors inquired about the rationale for the financing approach and terms of this DPF and the
pipeline for the country. They emphasized the need to protect the poor and vulnerable groups in
the event that social conditions deteriorate and welcomed the fact that both projects would improve
and expand coverage of the main social safety net program.

Directors acknowledged the high risks associated with the budget support operation. They also
noted risks associated with institutional capacity for implementation, social and sustainability
challenges. They encouraged the Bank to continue its collaboration with other development
partners as well as close technical cooperation with the Government of Argentina to support its
structural reform program and overall risk mitigation efforts.




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*This summary is not an approved record.