Argentina Seeks $20 Billion IMF Loan

AFP/APP

Buenos Aires: Argentina has sought a $20 billion loan from the International Monetary Fund, the country’s economy minister said Thursday, as the government struggles to maintain foreign reserves while propping up an ailing currency.

In addition to the $20 billion IMF request, Luis Caputo announced that Argentina was negotiating an additional package with other organizations such as the World Bank and the Inter-American Development Bank (IDB) to strengthen its reserves.

President Javier Milei’s government released the preliminary agreement figure amid a run on the peso that drained reserves by more than $1.2 billion last week.

The proposal must now be approved by the IMF board. In the last six months, the peso has fallen about ten percent against the US dollar.

Caputo said the IMF loan would “not be used to finance expenses” but used to recapitalize the Argentine central bank.

Argentina has been a serial defaulter in recent decades, leaving it few options for borrowing cash on international markets.

But right-wing President Milei came to office in December pledging to cut spending, tame inflation and fix a steep fiscal deficit.

He has made good on his promises of cuts, but that has pushed more Argentines into poverty.