Wink to Caputo: the World Bank and the IDB will approve guarantees next week to add US$ 2.5 billion

The World Bank will have its board meeting on Tuesday, June 16, to discuss the request made by Caputo in April during the spring meeting of the Monetary Fund and the World Bank. The expectation is that they will approve guarantees for US$2,000 million, while another US$500 million depend on the Inter-American Development Bank (IDB).

With that approval, the Washington-based organization will go out to look for funds in private banks and other financial institutions that could double that sum. Caputo estimated in April that they could take on debt for about US$4 billion and thus access “cheaper” financing sources than the market.

The objective of the financial maneuver is to raise funds to pay the capital and interest maturities on July 9 with the bondholders for US$ 4.3 billion. The economic team remains unchanged – for now – with its plan to take on debt with local or multilateral investors, until the rate drops to return to international markets.