IMF Loans About $10.8 Billion To Argentina

The International Monetary Fund is all set to loan Argentina almost about $10.8 billion for the rest of the year, which is part of a refinancing agreement that is to help the “cash-deprived” nation navigate through an unstable period ahead of the presidential elections – Bloomberg.

The payment of the first portion of $7.5 billion is to be made in August after the IMF’s executive board approved in the second half of the month, the IMF said in a statement on Friday, while confirming that the staff had committed to an agreement with the government of the retiring President Alberto Fernandez.

The nation plans to make the payment by drawing its “currency swap line” with China, along with other sources of financing, according to expert sources.

The economic ministry of Argentina had claimed that it had received authorization for a $1 billion loan for bridge construction from the CAF development bank.

A financial request was made by Sergio Massa, the Economy Minister of Argentina, on Thursday.

“It’s very good news. This lets us get through this second half of the year that is obviously marked by the election, which sometimes creates uncertainty or doubts, with a lot more calm,”

Massa said in a television interview who is not only running for the presidential elections in October but also having discussions over the negotiations with the IMF.

IMF

Further reviews are to be done in November, as stated by the fund in a statement.

“Argentina scored a partial win following protracted negotiations with the International Monetary Fund. It will have early access to the lender’s cash despite failing to meet the conditions for regular disbursements. In exchange, the fund insisted on policy measures the government has departed from in recent months, and imposed a lower, but still challenging target of net reserve accumulation,” 

as added by the economist for Brazil and Argentina, Adriana Dupita.

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