WASHINGTON, March 27 (NNN-Xinhua) — The Executive Board of the International Monetary Fund (IMF) on Friday approved a 44-billion-U.S. dollar 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 9.7 billion dollars, a statement said.
The financing program “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 organization supports the Argentine government’s efforts in financial and economic reforms.
Concerning the fact that spillovers from the Russia-Ukraine conflict are materializing, risks to the program are “exceptionally high,” the IMF chief said. “In this context, early program recalibration, including the identification and adoption of appropriate measures, as needed, will be critical to achieve the program’s objectives,” she added.
The IMF lent 57 billion dollars to Argentina in June 2018, the largest loan in the IMF’s history. The country faces a 19-billion-dollar payment due this year, a timeline the government considered impossible.
On Jan. 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. — NNN-XINHUA
