IMF to disburse $7.5 bln to Argentina

IMF to disburse $7.5 bln to Argentina

IMF to disburse $7.5 bln to Argentina

Argentina is set to receive a much-needed disbursement of funds from the International Monetary Fund (IMF), the lender has said, with a fresh staff-level agreement paving the way for access to $7.5 billion.

The aim is to "support Argentina's policy efforts and near-term balance of payments needs," as the country grapples with a tough economic backdrop, the IMF said in a statement.

The latest deal, which is subject to approval by the IMF executive board, could help keep the South American nation afloat while its presidential race is underway, with the winner of the election to take office in December.

"Argentina's economic situation has become very challenging," the fund said. "Key program targets through end-June were missed on account of the larger-than-anticipated impact of the drought, as well as policy slippages and delays."

The expected release of funds comes under part of an earlier 30-month arrangement, approved in March 2022, totaling $44 billion.

The recent discussions "focused on reaching agreement on a policy package to rebuild reserves and enhance fiscal order," said the IMF statement.

The fund added that "safeguarding stability and addressing underlying imbalances, high inflation and low reserve coverage, are fundamental to secure a more sustainable, resilient, and inclusive growth over the medium term."