Announcement of World Bank Supports Argentina's Growth-Oriented Structural Reform Program on January 13, 1987

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. BANK NEWS RELEASE 87/Sl Contact: Ciro Gamarra (202) 477-5320 WORLD BANK SUPPORTS ARGENTINA'S GROWTH-ORIENTED STRUCTURAL REFORM PROGRAM WASHINGTON, January 13 -- Barber Conable, President of the World Bank today expressed general support for the program of structural reform which the Argentine Government had presented to the Bank. The program constitutes an unprecedented effort in Argentina to restore sustained economic growth through improvements in the productivity of the Argentine economy in a stable environment. The comprehensive medium-term framework for structural change sets clear objectives and provides for a broad-based program to reform the operations of the public sector and to strengthen the incentives for the private sector. The Government has conducted an intensive and productive dialogue with the Bank in this context. The World Bank's President noted that this medium-term program would provide a sound framework for Argentina's discussions with all of its sources of external finance. For its part, the Bank was prepared to increase its lending substantially, in support of this program as Argentina proceeds with its implementation. Loans under preparation include operations to support diversification of exports, improvements in the financial system, development of energy resources, strengthening of the social sectors, reform of the public sector and increases in private sector productivity. In association with these reforms, the World Bank envisages lending of $2 billion for the two-year period 1987-1988. The successful implementation of Argentina's program will also need substantial additional financing from its commercial creditor banks and all other creditors. Mr. Conable expressed confidence that the medium-term framework will elicit their full cooperation. NOTE: Money figures are expressed in U.S. dollar equivalents.