International Monetary Fund reaches preliminary agreement with Argentina with $20 billion bailout
Buenos Aires, Argentina (AP) – The International Monetary Fund said Tuesday it had reached a preliminary employee agreement with cash-sparing Argentina, which was reached with a $20 billion bailout package, seeking welcome from liberal President Javier Milei, who is trying to transcend the country’s old economic order.
As an employee-level agreement, the transaction still requires final approval from the IMF Executive Committee.
The deal provides a lifeline for President Miley, who praised a severe austerity plan through the IMF after years of turmoil, cut inflation and stabilized the economy. But without cash from international lenders, he could not rebuild his inherited scarce foreign exchange reserves, and he needed to pay off his debts and lift Argentina’s strict monetary control.
“The agreement builds on impressive early progress in stabilizing the economy,” the organization said in a statement announcing the loan agreement under a 48-month arrangement.
This will mark the 23rd rescue plan for the Argentina crisis. The country is already the fund’s largest debtor, owing more than $40 billion in pre-plans.
