IMF frees $7.5 billion for Argentina, lowers bar for economy targets
The executive board of the International Monetary Fund (IMF) on Wednesday approved the disbursement of $7.5 billion for Argentina after completing the fifth and sixth reviews of their $44 billion program, the IMF said.
Various economic targets included in the program were eased, as in the fourth review, and waivers for non-observance were also in place, the IMF said.
Total disbursements under the arrangement are now about $36 billion, the fund said.
IMF staff and Argentina had reached an agreement late in July, which had eased economic targets partly because a devastating drought has created a challenging environment for the grains exporter - costing it an estimated $20 billion in export income.
Most of the cash is being used to pay back the fund for the record, $44 billion bailout program - which the IMF granted in 2018 to right-wing former President Mauricio Macri, reportedly at the behest of then-U.S. President Donald Trump.
At: https://www.reuters.com/world/americas/argentina-secures-75-bln-disbursement-imf-board-oks-reviews-govt-2023-08-23/
IMF Managing Director Kristalina Georgieva and Argentine Economy Minister Sergio Massa following today's meeting at the Fund's headquarters.
Capping weeks of negotiations, the IMF released a $7.5-billion advance to the hard currency-strapped nation - of which $3.4 billion will be available to fend off attempts to destabilize Argentina's fragile finances by the country's increasingly radicalized right-wing opposition ahead of elections this October.
A surprisingly strong showing by far-right figure Javier Milei in first-round elections on August 13th sent parallel currency markets in Beunos Aires reeling - and today's advance may help stem any future such maneuvers.
