Announcement of Argentina Public Enterprise Reform Adjustment Loan (PERAL) on February 15, 1991

FOR IMMEDIATE RELEASE kWorld Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEW RELEASE NO. 91/42 Contact: Richard Kollodge Tel: (202) 473-1792 ARGENTINA: PUBLIC ENTERPRISE REFORM ADJUSTMENT LOAN (PERAL) Following are details of a project approved by the World Bank's Board: DATE: February 15, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $300 million. The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $300.0 million OTHER FINANCING: None IMPLEMENTING AGENCY: Ministerio de Economia ESTIMATED COMPLETION DATE: 1993 PROJECT DESCRIPTION: The objective of the "Public Enterprise Reform Adjustment Loan (PERAL)" is to assist the Argentine Government in stabilizing its economy and resuming growth by reducing the role of the state in public enterprises, increasing production and improving quality of service, and promoting private sector investment. The project will include: (a) the privatization/restructuring of public enterprises in the telecommunications, railways, and hydrocarbons sectors, and (b) the better management of other public enterprises. Proceeds of the loan will finance the foreign exchange cost of eligible imports.