The World Bank Group on Tuesday approved a $2 billion commercial loan package for Argentina, which will help the country reduce its financing costs and strengthen public debt management, the institution said in a statement.

The plan combines two loans. The first is a policy-based guarantee from the International Bank for Reconstruction and Development, and the second is a loan from the Multilateral Investment Guarantee Agency, the bank said in a statement. The commercial loan has a six-year term, with a three-year grace period.

(Reporting by Eliana Raszewski in Buenos Aires, Editing by Matthew Lewis)