The International Monetary Fund (IMF) has recently confirmed that the Minister of Economy of Argentina, Luis Caputo, requested a new loan from the international organization. This request occurs in a context of shortage of genuine dollars in the country, which has led to the government of Javier Milei to look for a financial “lifeline” to sustain his economic plan.
Argentina’s economic situation has been complicated in recent years, with high inflation, a significant fiscal deficit and a shortage of international reserves. In this scenario, the government Javier Milei, through Luis Caputo, has decided to turn to the IMF again to obtain a new loan that will stabilize the economy and open the exchange rate.
The new financial program that is being negotiated with the IMF aims to refinance the 44 billion dollars coming from the stand-by agreement signed by the government of Mauricio Macri in 2018.
This agreement was redefined in 2022 and adjusted again in January 2024 after the assumption of Javier Milei. The current Extended Facilities program, signed in March 2022, expires at the end of this year. IMF spokesperson Julie Kozack confirmed that Argentine authorities have formally expressed interest in moving to a new program and that negotiations are underway.
Kozack highlighted Argentina’s “impressive results” in implementing its economic stabilization program, including reduced inflation, fiscal surplus and an improvement in international reserves.
The request for a new loan to the IMF reflects the urgent need of the government Argentine to obtain fresh dollars to sustain its economy. Caputo is seeking at least 20 billion additional dollars, with which he intends to support a hypothetical opening of the exchange rate.
Financial program
The approval of this new financial program is crucial to avoid a currency crisis and guarantee the country’s macroeconomic stability. The news of the application for a new loan to IMF has generated various reactions in the political and economic sphere.
Some analysts consider this measure necessary to avoid a major crisis, while others criticize the country’s dependence on international loans and the lack of long-term structural solutions.
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