Mon. Apr 6th, 2020

Argentina receives 5,631 million dollars from the agreement with the IMF

Argentina receives 5,631 million dollars from the agreement with the IMF



Argentina today received 5,631 million dollars as part of the financial assistance agreement signed this year with the International Monetary Fund (IMF), which provides loans for three years for a total of up to 56,300 million dollars.

The income was accounted for by the Argentine Central Bank and to a large extent they explain the increase in 6,175 million dollars registered today in international reserves, which now amount to 54,042 million dollars.

"For us, the disbursement of the first tranche of contingent loans made by the IMF is a very positive development," Argentine Foreign Minister Jorge Faurie told a news conference today.

The foreign minister stressed that this disbursement is "important" because it gives "solvency to the programs that the Government has" and implies a "ratification that the sense of the reforms Argentina is carrying out is correct."

Last Friday the IMF approved to extend the financial assistance to the Argentine Government to the 56,300 million dollars, an agreement that had been announced in September and that was pending to receive the approval of the directory of the multilateral organization of credit.

The new pact strengthens the "stand-by" agreement reached between both parties in June, a regular program of the Fund that requires a strong intervention of the multilateral institution in national economic policies.

In the Argentine case, the agreement includes, among others, a commitment to achieve primary fiscal balance next year, which will mean a strong economic adjustment foreseen in the draft Budget 2019, which last week was approved by the Chamber of Deputies and that now must be debated by the Senate.

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