IMF Set to Review Argentina’s $44 Billion Loan for New Deal
The IMF will assess Argentina’s loan program next month, a key move as President Milei seeks a new financial agreement
Argentina, IMF, Javier Milei, Loan, Economy
Buenos Aires: So, the IMF is gearing up to take a look at Argentina’s hefty $44 billion loan next month. This is a big deal for President Javier Milei as he tries to hammer out a new deal.
They’re planning to meet in early January to go over a report about the agreement Argentina made with the IMF back in 2022. It’s all pretty hush-hush right now, but it’s a standard procedure for countries that borrow more than usual.
There’s been some chatter about how these big loans have been criticized for not being clear or consistent. The IMF’s internal watchdog pointed out some issues with how these loans are designed and implemented.
In a recent email, the IMF said they’re wrapping up the report, which is just part of the usual process for these kinds of loans. They didn’t say much about when the board will meet, though.
For Argentina, which owes the most to the IMF, this review is crucial before they can strike a new deal. Earlier this month, an IMF spokesperson mentioned that talks with Argentina are already in the works, and there might be some fresh funds involved.
Milei is on a mission to turn around Argentina’s struggling economy with a major austerity plan. He believes a new program could help lift currency controls next year.
So far, Argentina has received about $41.4 billion from this current program, which is its 22nd deal with the IMF since 1958. They haven’t gotten the rest of the funds because they’re looking to jump straight into a new loan, skipping the last two reviews that were supposed to happen.
The last time the IMF did a review for Argentina was back in December 2021, when they looked at the 2018 loan, which was the largest standby arrangement in the fund’s history.