WASHINGTON (XINHUA) – The Executive Board of the International Monetary Fund (IMF) last Friday approved a USD44-billion loan for Argentina to help the South American country tackle high inflation, ease the debt burden and promote economic growth.
The Washington-based lender approved a 30-month extended fund facility, allowing for the immediate disbursement of USD9.7 billion dollars, a statement said.
The financing programme “aims to provide Argentina with balance of payments and budget support” and also “strengthen debt sustainability, tackle high inflation, boost reserves, address the country’s social and infrastructure gaps and promote inclusive growth”, it added.
IMF Managing Director Kristalina Georgieva noted that the country is struggling with low incomes, increasing prices as well as a heavy debt burden, and the organisation supports the Argentine government’s efforts in financial and economic reforms.
Concerning the fact that spillovers from the Russia-Ukraine conflict are materialising, risks to the programme are “exceptionally high”, the IMF chief said. “In this context, early programme recalibration, including the identification and adoption of appropriate measures, as needed, will be critical to achieve the programme’s objectives,” she added.
The IMF lent USD57 billion to Argentina in June 2018, the largest loan in the IMF’s history. The country faces a USD19-billion payment due this year, a timeline the government considered impossible.
On January 28, the two sides struck a pre-agreement to restructure the country’s 2018 loan, steering clear of a massive debt default that both were eager to avoid.
