China News Service, Beijing, February 1 (Buenos Aires News): According to foreign media reports, on January 31, local time, the International Monetary Fund (IMF) approved an additional US$4.7 billion loan to Argentina.
The IMF passed a review of Argentina's debt refinancing plan on the same day. The plan was approved by the IMF in March 2023 and provides approximately US$44 billion in special drawing rights. The $4.7 billion loan is part of the plan.
Reuters quoted a statement issued by the IMF saying that although the Argentine government failed to achieve key goals of its debt refinancing plan at the end of 2023 due to serious policy setbacks, the IMF approved a waiver for Argentina and adjusted the plan goals to get it back on track. .
In December 2023, Argentine President Milai announced a package plan for economic reforms in an attempt to save the Argentine economy with "shock therapy." However, the plan did not advance as expected, and the reform measures on labor relations were stopped by the court.
"Argentina Times" stated that this US$4.7 billion amount will be used to repay Argentina's mature debt. Of this amount, US$2.7 billion will be paid directly to the IMF as principal and interest; another US$960 million will be paid to the Development Bank of Latin America (CAF) to repay the loan due in December 2023. The remaining funds will be used to pay debt due in April 2024.
Bloomberg reported that the loan approved by the IMF will buy some time for Milley to promote economic reforms. In order to satisfy MPs, Milley has excluded measures such as tax increases from the reform bill, and he is still trying to persuade Parliament to approve the bill.
Reuters said that before approving the loan, the IMF had just lowered its forecast for Argentina's economic growth, saying that due to the impact of economic reforms, the country's GDP in 2024 may decrease by 2.8%. (over)