The International Monetary Fund’s executive board approved a $7.5 billion disbursement to Argentina on Wednesday, according to a statement from the country’s Economy Ministry.
(Bloomberg) — The International Monetary Fund’s executive board approved a $7.5 billion disbursement to Argentina on Wednesday, according to a statement from the country’s Economy Ministry.
Economy Minister Sergio Massa, who has led negotiations with the fund and is also running for president, will meet with the IMF’s managing director Kristalina Georgieva at the Washington headquarters on Wednesday at 2 p.m. Washington D.C. time, followed by a press conference at 6 p.m., according to the statement.
The cash payments are part of a refinanced $44 billion loan program, the lender’s largest, that extend a crucial lifeline to the cash-strapped government ahead of a tight presidential race. The board decision follows a July preliminary agreement that eased some aspects of the deal, as Argentina struggled to meet its terms amid a severe drought that has battered crop exports and the economy.
The IMF press office did not immediately respond to a request for comment.
The agreement will extend past October’s election after the Washington-based lender combined its fifth and sixth reviews. Argentina is expected to receive another disbursement in November, pending a separate board approval. The funds will largely be used to repay the IMF.
Massa, the Peronist-governing coalition’s candidate, told reporters Tuesday that he did not expect the election outcome to affect the November disbursement. Javier Milei, a libertarian outsider who wants to close the central bank, emerged from August’s primary as the race’s likely frontrunner.
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–With assistance from Philip Sanders.
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