The International Monetary Fund announced 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, according to Sky News.
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 press release issued by the international financial institution.
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.”
Combined with the program’s fifth and sixth reviews, Argentina will not have to undergo another review before the presidential elections in October, with the next review 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 IMF added.
Source: Sky News