Announcement of World Bank Technical Assistance Loan for Public Sector Reform in Argentina on June 26, 1991

FOR IMMEDIATE RELEAS _. World Bank 1818 H Street, N.W., Washington. D.C. 20433. U.S.A. BANK NEWS RELEASE NO. 91/ 1087LAC Contact: Ciro Gamarra (202) 473-8721 WORLD BANK TECHNICAL ASSISTANCE LOAN FOT PUBLIC SECTOR REFORM IN ARGENTINA WASHINGTON. D.C., June 26, 1991 -- The World Bank has approved a $23 million loan to help finance a technical assistance project in Argentina to help strengthen the administrative and technical capabilities of the government to carry out public sector reforms. The technical assistance loan will contribute to strengthening key functions of the institutions -in charge of the economic reform program. A $300 million loan in support of the government's public sector reform program is currently under preparation. The technical assistance project will support measures to reorganize and modernize the Central Bank, restructure the Superintendency of Financial Entities, modernize and computerize the Customs Department, and reform and modernize the Central Government's internal administration. The project will also support the establishment of new systems for comprehensive public sector financial management and integrated budgetary processes and controls for improved allocation of public resources. Consultant services, computer equipment, software and logistical support are being provided under the project to the Ministry of Economy, the Central Government Ministries and the Presidency, and the Central Bank to strengthen and improve their organizational structure and administrative procedures. The cost of the project is estimated at $31.5 million, with the Government of Argentina providing $8.5 million. The World Bank loan will be disbursed over four years. The loan to the Republic of Argentina is for 17 years, including five years of grace, with a variable interest rate, currently at 7.73 percent, linked to the cost of the Bank's borrowings. ItIalso carries an annual commitment charge of 0.25 percent on the .undisbursed balance. NOTEt Money figures Ere expressed in U.S. dollar equivalents.