Announcement of World Bank Assists Reforms in Social Sectors in Argentina on July 28, 1988

FOR IMMEDIATE RELEASE Vorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 89/1 Contact: Ciro Gamarra (202) 473-8721 WORLD BANK ASSISTS REFORMS IN SOCIAL SECTORS IN ARGENTINA WASHINGTON, July 28, 1988 -- Reforms to improve Argentina's institutional and physical capacity to deliver social services those who most need them will be assisted by a World Bank loan of $28 million. The loan, the first to Argentina in fiscal year 1989, will help finance a social sector management technical assistance project. The project will help prepare programs for improvements and launch administrative reforms in social sectors in Argentina. The project will provide technical assistance and equipment to the ministries of Education and Justice, Health and Social Action, Labor and Social Security, and Economy, and to the National Directorate of Statistics and Census. The technical assistance will help improve the quality and cost effectiveness of social services, improve the access of the needy to social services, and prepare programs and plans of action for the mid-term development of the social sectors. The ministries in charge of social services in Argentina function at very low levels of productivity, lack reliable and systematic information, and are not able to analyze their own programs or monitor the performance of sector agencies. They also suffer from low salaries, absenteeism, low morale and poor office conditions. The project is expected to bring about major improvements in the efficiency of social service delivery, mobilize additional resources and contribute to the alleviation of the negative impact of the deteriorating economic situation of the last decade and of the cost of recession and adjustment on the poor. It also includes assistance to prepare follow up projects that would be presented to the World Bank for financing. The $45 million project, to be carried out over three years, will provide funds for consultant fees, training, vehicles, furniture and equipment, and civil works. The Government of Japan has agreed to assist the project with a grant equiva- lent to $3.7 million. The balance of $13.3 million will be provided by the Government of Argentina. The World Bank loan to the Republic of Argentina is for 15 years, including a five-year grace period, with a variable interest rate, currently 7.59 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.75 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.