Buenos Aires: The International Monetary Fund (IMF) announced a preliminary staff-level agreement with Argentina on a $20 billion financing package, as part of efforts to rescue the country’s economy, which is facing a severe liquidity crisis and declining foreign reserves.
According to Qatar News Agency, the IMF said in an official statement that the agreement, which is part of a four-year program, still requires approval by the IMF’s executive board before it can take effect.
This agreement represents a significant boost for Argentine President Javier Milei, who seeks to dismantle the old economic system through strict austerity measures aimed at curbing inflation and achieving relative economic stability.
These reforms have been praised by the IMF, but they have faced challenges regarding financing needs and the ability to repay accumulated debt.
The IMF affirmed that the agreement builds on the authorities’ early progress in achieving economic stabilization, noting that the financial support will help the Argentine government rebuild foreign exchange reserves and ease some of the strict controls imposed on the local currency.
This package is Argentina’s 23rd with the IMF, at a time when the country remains the fund’s largest debtor, with debts exceeding $40 billion from a previous financing program.