(BSS/AFP) - The Inter-American Development Bank (IDB) will grant Argentina over 3.8 billion dollars in funding this year, the bank`s chief said in an interview Sunday, praising the reforms undertaken by President Javier Milei.

In an opinion piece in the Financial Times newspaper IDB president Ilan Goldfajn praised Milei`s "remarkable progress in restoring much needed fiscal balance".

In the first quarter of this year, Argentina produced its first quarterly budget surplus in 16 years.

"It hasn`t been straightforward," Goldfajn said, referring to the draconian austerity measures taken by Milei, including deep spending cuts, which have been blamed for driving up poverty levels.

He urged the government to "continue improving spending efficiency and redirecting resources to better support the most vulnerable Argentines."

Public spending, he said, "must become more efficient and equitable".

He added that the IDB, which provides development assistance to Latin American and Caribbean countries, would provide over 2.4 billion dollars in public sector loans to Argentina in 2024 and that the bank`s private sector arm would finance more than 20 private sector projects to the tune of 1.4 billion dollars.

During campaigning for president last year Milei wielded a chainsaw to signify his plans to slash spending and tame one of the world`s highest inflation rates.

His shock therapy has led to a marked decline in inflation, which fell to 3.5 percent in September, its lowest level since November 2021, but have also driven the economy into recession.