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World Bank Clears $300 Million in Additional Financing to Refocus Argentina’s Energy Subsidies

The money will modernize subsidy systems to better protect vulnerable households, including those relying on bottled gas.

Overview

  • The World Bank Board approved the new loan on Dec. 19 as additional financing to a 2023 $300 million operation, lifting total support for the program to about $600 million.
  • Argentina formalized the contracting through Decree 900/2025, with the Energy Secretariat leading execution and energy regulators participating in implementation.
  • Press reports differ on the loan’s terms, citing either a 32‑year repayment with seven years of grace or a 35‑year amortization with a six‑year grace period.
  • A simplified subsidy regime starts in January 2026 under Resolution 484/2025, replacing three income tiers with two categories based on a cutoff of three basic baskets and migrating RASE enrollees automatically.
  • Eligible households receive a 50% discount on defined electricity blocks year‑round and a 50% gas subsidy focused on April–September, plus a one‑time 25% bonus in January 2026, with bottled‑gas users integrated into the registry.