Latin America

Argentina signs historically large IMF deal

Roughly USD 44 billion in debt payments will be kicked down the road if the country meets policy requirements, staving off the risk of an unprecedented default

argentina imf Peronist militants march in Buenos Aires to support President Alberto Fernández as he delivers his State of the Union address. Photo: Juan Ignacio Roncoroni/EFE via Folhapress
Peronist militants march in Buenos Aires to support President Alberto Fernández as he delivers his State of the Union address. Photo: Juan Ignacio Roncoroni/EFE via Folhapress

Argentina and the International Monetary Fund (IMF) publicly announced an agreement yesterday to restructure the record USD 44 billion loan signed in 2018. It comes only days before the March 22 deadline that could have sent Argentina into an unprecedented default with multilateral credit institutions.

The country will have to jump through multiple fiscal and monetary hoops, as well as respect specific policy requirements, in order to receive fresh funds to face its 2022-2024 payment schedule. In practice, this means that Argentina will buy time until the maturities from the new arrangement start kicking in, between 2026 and 2034.

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