The World Bank Group has approved an innovative financing package for Argentina that combines two guarantees to help mobilise up to US$2 billion in commercial loans, the institution said on Tuesday.
The package, approved by the boards of the International Bank for Reconstruction and Development (IBRD) and the Multilateral Investment Guarantee Agency (MIGA), pairs a first-loss Policy-Based Guarantee from IBRD with a second-loss guarantee from MIGA. Together, the guarantees will cover 95 percent of debt service payments under the commercial loan, which carries a six-year maturity with a three-year grace period.
The World Bank said the structure is designed to lower Argentina's borrowing costs and strengthen public debt management while supporting reforms aimed at creating jobs, attracting infrastructure investment, and improving financial inclusion for smaller businesses.
"We are committed to supporting Argentina's macroeconomic stabilization and growth reform agenda," said Susana Cordeiro Guerra, World Bank Vice President for Latin America and the Caribbean. "This innovative guarantee structure helps bridge the country's return to international capital markets, mobilizing financing on more affordable terms."
Argentina has been locked out of international capital markets for years following its 2020 sovereign default and subsequent restructuring. The country completed restructuring negotiations with the International Monetary Fund in early 2026, and the World Bank package represents a further step toward normalising its access to external financing.
The guarantees sit under the World Bank Group Guarantee Platform, launched in 2024, which consolidates guarantee products from across the institution at MIGA. The platform aims to boost annual guarantee issuance to US$20 billion by 2030 by simplifying and streamlining processes for client countries.
"This transaction demonstrates how the innovative layering of financial products using the Guarantee Platform can be tailored to the needs of our member countries," said Junaid Kamal Ahmad, MIGA Vice President of Operations. He said the structure would deliver "large savings when they are most needed" while attracting investment that improves both livelihoods and economic conditions.
The IBRD and MIGA guarantees will also support actions that mobilise private capital for infrastructure, strengthen market competition, and improve the broader business environment for firms operating in Argentina.
Argentina's economy has faced persistent challenges including inflation running above 50 percent, currency depreciation pressures, and low foreign exchange reserves. The World Bank said the financing package is aimed at helping the government lower its financing costs while advancing a reform agenda focused on fiscal consolidation, private sector development, and long-term growth.
The approval comes as several emerging-market economies seek creative financing structures to regain access to capital markets after pandemic-era debt build-ups and higher global interest rates reduced traditional borrowing options.
Sources: worldbank.org
