As President Javier Milei maintains his shock therapy approach to economic changes, an IMF official indicated Tuesday that Argentina and the Fund are in advanced discussions on a new loan agreement.
“Discussions on a new Fund-supported program are advanced, and as part of our routine internal processes, Fund staff is engaging with the Executive Board,” an International Monetary Fund official said in a statement shared with AFP.
Speaking on condition of anonymity, the person did not elaborate on the nature of the discussions between the executive board, which represents member state interests, and IMF staff.
Following a vote in Argentina’s Congress last week that authorized Milei to negotiate a new IMF loan agreement, in addition to the $44 billion Buenos Aires currently owes the lender, the IMF released its statement.
On March 11, Milei requested that parliament authorize a new 10-year loan to increase the central bank’s foreign exchange reserves and pay off impending debt.
Under a 2021 law, Argentina’s president must seek authorization from both houses of Congress to request money from the IMF, but needs support from only one to go ahead with the loan.
The IMF will meet with the executive board this week to discuss a new four-year loan program for Argentina costing almost $20 billion, according to a previous Bloomberg News story, but the exact amount may yet alter.
Regarding the extent of the loan being considered, an IMF representative declined to comment.
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