WASHINGTON D.C., September 21, 2022 – The World Bank Board of Directors approved a US$ 50 million loan to support social safety net programs in Buenos Aires Province. These include the electricity social tariff and food assistance programs, which reach over 1.7 million people.
“The approval of this new program is crucial for strengthening support to contain vulnerable sectors in Buenos Aires Province. The cycle of recession, pandemic and war has greatly impacted the province and requires a variety of support measures,” said Sergio Massa, Argentina’s economy minister.
“Strengthening food security and access to electricity helps reduce the vulnerability of the poorest households. This new project is part of the World Bank’s comprehensive assistance to Argentina, which, with financing of US$ 2 billion, contributes to government efforts to reduce the impact of the crisis,” said Jordan Schwartz, World Bank Director for Argentina, Paraguay and Uruguay.
The project will finance the Más Vida food program, created during the Covid-19 pandemic, which provides direct cash transfers through debit cards to vulnerable populations and those with pre-existing health conditions. Currently, this program reaches 114,000 people.
Additionally, this financing will mitigate the impact of the measure to reduce energy subsidies nationwide on 1.6 million vulnerable users and 189,000 households in informal settlements connected through community meters. The program will also support the province in improving the management of the electricity social tariff scheme.
The additional financing for the Social Safety Nets for Vulnerable Populations in the Province of Buenos Aires is a variable spread loan, with a maturity period of 17 years and a five-year grace period.
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Learn more about the work of the World Bank in Latin America and the Caribbean: www.worldbank.org/lac