Argentina gets first US$15 bln tranche from IMF

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Argentina on Friday received 15 billion US dollars, the first tranche of a 50-billion-US-dollar loan from the International Monetary Fund (IMF) to help stabilize its fragile economy, the South American nation's central bank said.

Following a currency crisis in April and May, the IMF announced the 50-billion-dollar standby loan in early June after Latin America's third largest economy sought help to bolster market confidence.

The Argentinian peso plunged to a record low this month, and since the start of the year the currency has dropped more than 30 percent against the dollar.

On Wednesday the Washington-based IMF approved the 50 billion US dollar aid package. It said the first 15 billion US dollars will contribute to budget support while the 35-billion-dollar balance will be "precautionary."

The fund said that its assistance would back efforts by Buenos Aires to put public debts on a sustainable path, reduce the need for financing and tackle inflation while strengthening the central bank's independence, while maintaining social spending.

Argentina has a bitter history with the global crisis lender, which many Argentinians view as having imposed tough conditions that worsened the country's economic pain 17 years ago.

Source(s): AFP