WASHINGTON, USA — The board of executive directors of the Inter-American Development Bank (IDB) approved a guarantee of up to USD 550 million to strengthen security and justice policies in Argentina and improve the country’s access to capital markets.
The IDB guarantee is the first to support this type of reform in Argentina. It will also enable the country to mobilise $1.2 billion in private financing, helping improve access to international capital markets, in line with the objectives of the fiscal sustainability plan agreed with the International Monetary Fund (IMF).
The financing will support the Proactive Security and Justice Policies program (PROSEJUS), a set of reforms by the Argentine government aimed at reducing impunity for crimes associated with criminal organisations. The program seeks to strengthen the country’s security and justice system to enhance the effectiveness of criminal prosecution, criminal investigation, and the recovery of illicit assets.
Framed within the IDB’s Alliance for Security, Justice, and Development, the project adopts a comprehensive approach that includes a results-based program to strengthen the capabilities of federal security forces, as well as criminal investigation and intelligence.
According to IDB estimates, the direct cost of crime and violence in the country is equivalent to about 3.9 percent of GDP, exceeding the regional average. PROSEJUS will contribute to sustainable economic growth in Argentina by reducing impunity and lowering crime and violence associated with organised crime, while strengthening trust in public institutions.