The World Bank will support Argentina with $2 billion in 2022 amid a severe economic crisis in the country, Axel van Trotsenburg, the Bank’s Managing Director of Operations said.

The bank, which last year committed a record $2.1 billion to the South American country, “has a project pipeline under preparation of at least two billion dollars for 2022,” according to a statement.

“The World Bank is committed to supporting Argentina on its growth path and recovery from the impact of the COVID-19 crisis,” he said after a meeting with Argentinian Finance Minister Martín Guzmán.

According to him, the bank’s support has been key to sustaining basic services for the poor and financing the much-needed vaccines to protect lives and reactivate the economy.

Mr Guzmán said the investment would translate to some 830 million dollars of net financing of “innovation, infrastructure, health, social inclusion and environment projects.”

The second largest economy in South America is mired in a severe economic and financial crisis.

Argentina suffers from a bloated state apparatus, low productivity in industry and a large shadow economy that deprives the state of much tax revenue.

The national currency, the peso, continues to depreciate against the U.S. dollar and the mountain of debt is constantly growing.

The inflation rate in 2021 was 50.9 per cent compared to the previous year.

The International Monetary Fund (IMF) this week is expected to announce details of a new loan agreement to restructure Argentina’s $44 billion debt to the fund after months of negotiations.

(dpa/NAN)