The International Monetary Fund confirmed that it is in talks with Argentina on a new loan worth $20 billion, with the aim of supporting its economic reform program.
In a statement issued on Saturday, an IMF spokesman said that “progress on the new program continues at all levels to finalize an agreement that would help Argentina strengthen its successful economic program,” adding that any agreement would need to be approved by the IMF's Executive Board.
President Javier Miley's government announced on Thursday that Argentina, the largest borrower from the International Monetary Fund, is seeking a new loan of $20 billion, in addition to the $44 billion due to the Fund.
The previous loan signed in 2018 was the largest ever provided by the International Monetary Fund to financially troubled Argentina.
With that help, the IMF saved South America's second-largest economy 22 times. The IMF Executive Board has not yet approved the new programme.
In the context, Argentina's Minister of Economy, Luis Caputo, stated that the loan will be used to refinance the central bank. He added that Argentina is also negotiating for loans from the World Bank and the Inter-American Development Bank.
On Thursday, Miley considered that this loan will raise the central bank's reserves to at least $50 billion, compared to $26.23 billion currently.
The prospect of a new loan from the International Monetary Fund has led to a sharp decline in the value of the peso, driven by fears that the new deal will involve a possible devaluation of the currency, which Millie ruled out.
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