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Argentina Clears $500 Million IDB Loan Framework to Upgrade PAMI

The operation still requires IDB board sign-off and would release funds over four years based on independently verified health outcomes.

Overview

  • Decree 764/2025, signed by President Javier Milei and senior officials, approves the model contract for an Inter-American Development Bank loan of up to $500 million to strengthen PAMI.
  • PAMI is designated as the executing agency and the Ministry of Economy will sign and administer the funds, with procurement governed by IDB consultant and contracting policies.
  • The financing is structured as a results-based operation with four disbursement stages tied to indicators such as faster breast and colon cancer care, expanded chronic disease coverage, and more formal care for dependent older adults.
  • The loan carries a 25-year amortization with disbursements over four years and the first interest payment due six months after effectiveness; BAE reports a 5.5-year grace period and a SOFR-based rate.
  • Argentina’s central bank judged the macroeconomic impact as limited, the public credit office said the cost is below market alternatives, and the IDB projects roughly 5.4 million affiliates could benefit.