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ECONOMY | 12-06-2024 22:26

Argentina's Central Bank says China currency swap renewed until July 2026

Central Bank renews a roughly US$5-billion portion of its currency swap line with the People’s Bank of China for another two years.

Argentina's Central Bank has renewed a roughly US$5-billion portion of its currency swap line with the People’s Bank of China for another two years, the monetary authority said in a statement Wednesday.

Starting in mid-2025, Argentina will begin to gradually pay down the activated portion of the US$18-billion currency swap over a 12-month period, pushing out maturities that were scheduled for this June and July, according to the statement. 

The roughly US$5-billion loan was drawn down from the swap line between Beijing and Buenos Aires during former president Alberto Fernández’s government last year to make payments owed to the International Monetary Fund and finance imports. 

An agreement between the new government of President Javier Milei and IMF staff last month on the latest review of the country’s US$44-billion programme included a firm commitment to refinance or roll over the debt, according to people familiar with the deal, who asked not to be identified as the information isn’t public.

The rollover commitment clears a major obstacle for Argentina’s programme, as the government must show it has so-called financing assurances to receive IMF board approval.

by Manuela Tobias, Bloomberg

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