Monday, 29 November 2021

Argentina gets first $15 bn from IMF

Pedestrians walk past the International Monetary Fund headquarters' complex in Washington Sunday, May 2, 2010. A senior International Monetary Fund official says the IMF's executive board is meeting in Washington to consider how much aid to grant Athens under a massive rescue loan package. (AP Photo/Cliff Owen)

ARGENTINA received $15 billion, the first tranche of a $50 billion loan from the International Monetary Fund (IMF) to help stabilise its fragile economy, the South American nation’s central bank said.

Following a currency crisis in April and May, the IMF announced the $50 billion standby loan in early June after Latin America’s third-largest economy sought help to bolster market confidence.

The peso plunged to a record low this month, and since the start of the year, the currency has dropped more than 30% against the dollar.

On Wednesday the Washington-based IMF approved the $50 billion aid package. It said the first $15 billion will contribute to budget support while the $35 billion balance will be “precautionary.”

The fund said that its assistance would back efforts by Buenos Aires to put public debts on a sustainable path, reduce the need for financing and tackle inflation while strengthening the central bank’s independence while maintaining social spending.

Argentina has a bitter history with the global crisis lender, which many Argentines view as having imposed tough conditions that worsened economic pain 17 years ago.

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