2023-07-29 13:24:01
The International Monetary Fund announced, on Friday, that it had reached an agreement with Argentina that will open the door for the country in financial crisis to obtain $ 7.5 billion during the next few months within an already existing program.
The agreement, which has been negotiated for weeks, still needs to be approved by the fund’s executive board, which will meet in the second half of August, according to the IFC’s press release.
The agreement formally brings together the fifth and sixth reviews of a $44 billion 30-month loan program agreed to in 2022.
The date set for the sixth revision of the agreement, which Argentina is using in part to repay the fund’s existing debt, was in September.
With the terms announced Friday, the IMF seeks to “support Argentina’s policy efforts and balance of payments needs in the near term, which include commitments to the fund.”
With the combination of the fifth and sixth program reviews, Argentina will not have to undergo another review before the presidential elections in October.
The next review will be in November.
The International Monetary Fund stated that it agreed to ease some of the requirements in its program in part due to “the economic situation of Argentina, which has become very difficult as a result of the impact that exceeded expectations, which in turn affected exports and financial revenues,” referring to the drought that destroyed the crops of Argentina.
At the same time, there were shortcomings and delays” on the part of Argentina, the Fund added.
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