IMF approves second review of Argentina, paves way for $7.6 bln in funds

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The International Monetary Fund (IMF) completed its second review of Argentina on Monday, paving the way for the country to receive 7.6 billion U.S. dollars under a 56.3-billion-U.S.-dollar financing deal.

The next disbursement will be made once the IMF executive board approves the staff-level inspection of Argentina's fiscal and monetary policy required under the agreement announced in June, the world funding body said in a statement.

IMF officials conducted the review in Buenos Aires on November 9-16 and met with economy minister Nicolas Dujovne and Central Bank governor Guido Sandleris.

Argentina renegotiated the deal, the fund's largest ever, in September after the peso lost half its value against the greenback in 2018, sparking investor fears over the country's ability to service its international debts in 2019.

In line with the agreement, Argentina's Congress passed an austere 2019 budget earlier this month to balance the country's fiscal deficit next year.

"Strong implementation of the government's plan is essential to pave the way for a rebound of economic activity in 2019 and to support job creation, reduce poverty, and improve the living standards of all Argentines," the statement said.

Under the IMF deal, Argentina's central bank established a floating exchange rate band for the peso to stabilize foreign exchange markets and has sought control of the country's money supply to rein in inflation.

IMF managing director Christine Lagarde is expected to travel to Buenos Aires this week to participate in the G20 summit.

Source(s): Reuters