The International Monetary Fund (IMF) will lend up to $10.8 billion to Argentina for the rest of the year to help the cash-strapped country navigate the turbulent years ahead of the presidential election.
The first payment of US$7.5 billion will be made in August, after approval by the IMF’s executive board in the second part of the month, the IMF confirmed.
This means that the money will not be available in time for Argentina’s crucial election to be held on August 13, nor will it be in time to repay the $2.6 billion the government gave the IMF in one previous bond. do.
The country plans to use currency swap lines with China and other sources of funding to make the payments, the people said. Argentina’s economy ministry announced late Friday that it had received approval for a $1 billion bridge loan from the Caracas-based CAF Development Bank. Economy Minister Sergio Massa submitted a loan application on Thursday.
“This is very good news. This means we are much more relaxed in the second half of the year, which is clearly marked by an election that at times causes uncertainty and doubt,” Massa, an IMF negotiator and presidential candidate for the October election, said in a television interview about the IMF deal.
The next review will take place in November, the IMF said in a statement.
