World Bank, IDB grant Argentina $8.8 billion in financing for economic development

(Reuters) -The World Bank and the Inter-American Development Bank (IDB) are providing Argentina with $8.8 billion in financing, the South American country’s economy ministry announced on Wednesday, as the cash-strapped government ramps up support from key lenders.

The announcement follows meetings in Washington this week between senior officials, including Economy Minister Luis Caputo, and international lenders as Argentina’s government works to reverse a prolonged economic slump.

The World Bank’s financing over the next few months will cover $2 billion, which will be directed toward social spending including education as well as transportation and electricity costs, aimed at the poor, according to the statement.

Funding from the lender for private sector initiatives over the next couple years will finance $3 billion for projects including mining, renewable energy, health, as well as steel and aviation.

IDB funding, meanwhile, includes more than $2.4 billion for the government that should help finance additional social spending, including education and energy services, also focused on the poor, the statement noted.

Assistance from the IDB will also seek to boost the private sector over the next two years, adding another $1.4 billion.

(Reporting by Kylie Madry; Editing by Anthony Esposito)