IMF set to reach deal with Argentina

The International Monetary Fund (IMF) is set to finalise the basis for a staff level agreement with Argentina over a review of its $44 billion loan, the IMF said on Sunday.

“The teams of the Economy Ministry and Central Bank of Argentina and the IMF staff have finished the core aspects of the technical work of the next review, the central objectives and parameters that will be the basis for a ‘staff level agreement’ have been agreed,” said the IMF on Twitter.

Argentina will be unveiling tax and currency measures that will in return devalue its currency, as part of the deal, and will also introduce a new preferential exchange rate for agricultural exports and levies on imports.

Argentina is facing maturities with the IMF of $3.4 billion between July 31 and August 1, while the Central Bank of Argentina’s reserves has reached $6.5 billion.

Argentina is hoping to modify the economic goals it agreed to and suggest IMF disbursements scheduled for this year, as it faces a financial crisis.

The disbursement programme for the second half of 2023 has already closed and the staff level accord could be sealed by Wednesday or Thursday.

The agreement aims to consolidate fiscal order and strengthen reserves, said the IMF.

Argentina has been facing soaring levels of inflation, and is suffering from a hit to its foreign currency income, as a result of a severe drought.