The United Kingdom is going to oppose the sanction of loans to country Argentina from the World Bank & the Inter American Development Bank (IDB). This statement came in front of the British Parliament from the end of Justine Greening, who is the UK International Development Secretary. The opposition against Argentina in IDB will bring it into line of US, Spain and Germany. The similar decision was taken by the administration of Barack Obama almost a year ago. In a statement UK said that it has decided to block IDB and World Bank for the time until Argentina doesn’t review its international fiscal misconduct.
This move of UK is the result of recent financial matters like the disapproval of Argentina by the IMF. The International financial body, IMF awarded Argentina with a ‘Vote of no Confidence’, which is first of its kind, with its questionable figures looking upon inflation. The issues of Argentina in related to the payment with the International Center for Settlement of Investment Disputes (ICSID) were also mentioned in it. All these moves on which UK is planning to act are the result of the financial misconduct.
Despite the fact that that UK will oppose the approval of these financial credits to Argentina, the country reserved the right to approve loans that will create bad impact on the poorest sector of the Argentine population. On this the UKID secretary Justine Greening said, The strategy will remain an area under discussion by the time in which in future the actions taken by the Argentine government prove it is willing to put up with its international commitments. The arguments did very much similar to those which were presented in September, 2011 by Marisa Lago, the head of the International Affairs Office from the US Treasury.
But the difference was this that UK provided the list of Argentina’s non compliance of its commitments as the member of IMF. Greening Said, The available development funds are very limited in IADB and WB. So, we must make sure that they are being used in appropriate manner, but as per the attitude shown by Argentina it seems that this country is going to do so.
By now, the blocking votes have not delayed the approval of any finance especially with IADB as Argentina has great support here. But the situation is not alike in case of World Bank which has been finding the middle ground for a new package of loans delayed.
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