Idb Approves $100M Loan To Boost Argentina's Agroindustrial Production
(MENAFN- Caribbean News Global)
WASHINGTON, USA – The Inter-American Development bank (IDB) authorized a $100 million loan to Argentina to enhance the productivity and sales of the country's agroindustry, with a focus on climate change adaptation. The results are expected to bolster development in intervention areas and encourage rural people to stay on the land.
The Provincial Agricultural Services Program V will increase the coverage and quality of public rural infrastructure services related to irrigation, electrification, digital connectivity, roads, fire management, and commercial development. The operation will also help the National Agricultural Technology Institute (INTA) build its capacity to store genetic material from plants and animals in its germplasm bank. The loan will incentivize small and medium-sized agricultural producers and agro-industrial MSMEs to use technologies to achieve environmental sustainability, climate adaptation, and higher profits.
Argentina's agrifood sector is vital because it contributes to food security and is economically competitive in a fragile macroeconomic context. The sector, which accounts for 9.1 percent of the country's GDP, faces significant challenges, and its growth has stagnated in recent years. Meanwhile, significant disparities in production between the country's different provinces persist, and agriculture, livestock, and land use change are the country's second-largest source of greenhouse gas emissions.
This program is expected to benefit nearly 25,000 rural farmers and users, agroindustrial MSMEs, and rural agricultural associations and cooperatives directly.
The program will also receive EUR 150,000,000 in co-financing from the European Investment Bank and a $65,000,000 local contribution.
The IDB loan has a 25-year repayment term and a 5.5-year grace period.
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