Latin America

Breaking down Argentina’s USD 44 billion IMF pre-agreement

Both sides made concessions as the risk of a historic default loomed, with the country now close to kicking maturities one decade down the road

Argentina imf economy
Argentina’s Economy Minister, Martin Guzman, speaks during a press conference on the agreement with the IMF. Photo: Manuel Cortina/Sipa USA via Alamy

After two years of negotiations between Argentina and the International Monetary Fund (IMF), the two sides struck a pre-agreement to restructure the country’s 2018 USD 44 billion loan, steering clear of a massive debt default that both were eager to avoid.

The initial understanding still needs to get into finer details and secure approval from Congress and the IMF board of directors. Regardless, Argentina’s Economy Ministry and the IMF’s technical staff outlined a roadmap of disbursements, repayments, and macroeconomic policies that settled multiple contentious issues that once held the deal back.

Argentina’s center-left Peronist government accepted many of...

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