AGRICULTURAL CREDIT

closed

The project would form an important part of the Government's agricultural development strategy. It would help strengthen Argentina's export capacity and thus make it more independent from the stringent balance of payments constraints that have been a major factor of Argentina's erratic growth pattern in the past. Medium- and long-term agricultural credit and technical assistance financed under the project aim at increasing the relatively low productivity of farms in the Pampas and Mesopotamic region of the country, restoring the productive capacity of soils in an extensive area infested by weeks, and at expanding the country's cropping and pasture areas by clearing large portions of unproductive would have no special risks other than changes in Government pricing and exchange rate policies.