Argentina: New Agreement with IMF – $7.5 Billion on the Way

Argentina has reached a new agreement with the International Monetary Fund that provides funding in the amount of $7.5 billion.

The agreement between the IMF and the Argentine government was reached after lengthy negotiations: this is a “nominal agreement” that completes the revision of the previous $44 billion loan program. Buenos Aires will receive these funds despite the fact that the goals of the expanded financing program were not met, which provides some breathing space for the devastated economy of Argentina in a particularly difficult period due to the unprecedented drought of the past months and the lack of adequate political measures.

Recognizing the pressures involved, the IMF decided to provide additional assistance “to rebuild stocks and improve fiscal resilience while protecting critical infrastructure and social spending,” the IMF said in a statement.

At the same time, Argentina is committed to implementing onerous macroeconomic measures, such as adopting policies aimed at replenishing stocks and improving fiscal sustainability, while still maintaining the goal of deficit reduction to 1.9% of GDP within 2023.