The International Monetary Fund on Friday confirmed it was in talks with Argentina about a new US$20-billion, four-year loan programme to support the country's economic reforms.
"Progress on the new programme is very advanced and engagement continues at all levels to finalise an agreement that will help Argentina consolidate its already successful economic programme," an IMF spokesperson said in a statement shared with AFP, adding that any deal would need to be confirmed by the Fund's executive board.
President Javier Milei's government had already announced on Thursday that Argentina – the IMF's biggest debtor by far – was seeking a US$20-billion loan on top of the US$44 billion it already owes the IMF.
The previous loan, signed in 2018, was the biggest ever by the Washington-based lender of last resort to Argentina, a serial defaulter. In all, the IMF has bailed out South America's second-biggest economy 22 times.
The new programme has yet to be approved by the Fund's board.
Economy Minister Luis Caputo said the new money would be used to recapitalise the country's Central Bank.
He added that Argentina was also negotiating loans with the World Bank and Inter-American Development Bank.
Caputo said Thursday that the loans would increase the Central Bank's reserves to "at least" US$50 billion, compared to US$26.23 billion at present.
The prospect of another IMF loan has caused a run on the peso, prompted by fears that the new deal could entail a possible devaluation which Milei has rebuffed.
– TIMES/AFP
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