IMF gives green light for US$7.5 billion disbursement to Argentina

The International Monetary Fund (IMF) approved a funding of US$7.5 billion for Argentina, as announced by an Argentine Ministry of Economy representative in Washington.

This approval, confirmed in an IMF statement, is part of the fifth and sixth reviews under Argentina’s debt refinancing agreement with the institution.

On the same day as the announcement, Argentine Economy Minister Sergio Massa was set to meet with IMF Managing Director.

Following the latest disbursement, the cumulative amount extended to Argentina stands at US$36 billion.

Argentina anticipates another tranche of US$2.75 billion post the next review scheduled for November, as revealed by Massa in a press briefing after his meeting with Georgieva.

This recent funding, emphasized by Minister Massa, ensures Argentina’s “framework of stability” until the end of November, bolstering the Central Bank’s reserves.

The IMF review noted missed key targets due to Argentina’s unprecedented drought last year and early this year and deviations from committed policies.

The IMF Board approved certain exemptions and adjusted targets, including reserve accumulation and fiscal goals.

Argentina has committed to implementing new economic measures to maintain stability and achieve program objectives.

Massa expressed gratitude to the team negotiating the review and highlighted Argentina’s stance to maintain a constructive relationship with the IMF without accepting conditions that harm its citizens’ interests.

He pointed out Argentina’s commitment to a balanced relationship with the IMF, emphasizing the need to protect Argentine citizens’ interests.

The Minister also mentioned past loans Argentina secured from Qatar, China, and the Latin American Development Bank.

With a debt of US$45 billion to the IMF, taken during Mauricio Macri’s government (2015-2019), Argentina reached a refinancing agreement in 2022, subject to periodic reviews and linked to adherence to agreed economic policies.

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