IMF to Grant Argentina a Nearly $20 Billion Loan

Julie Kozack, spokesperson for the International Monetary Fund (IMF), stated that negotiations for Argentina’s new program are “very advanced.”

She emphasized a shared understanding of the need to continue implementing a consistent set of fiscal, monetary, and exchange rate policies.

However, she did not confirm the reported $20 billion loan amount, nor did she specify when the IMF’s Executive Board would meet to discuss Argentina’s request.

During a press conference in Washington on Thursday, Kozack reiterated that the financial assistance under discussion would be “considerable.” However, she did not confirm the $20 billion figure mentioned earlier in the day by Argentina’s Economy Minister, Luis Caputo.

She noted that the final size of the financial package would be determined by the IMF’s Executive Board. “Negotiations are ongoing, and I won’t go into details. I can confirm that the discussions are focused on a substantial financing package,” she stated.

She also did not provide a date for the Executive Board meeting on Argentina’s case. It is unlikely to take place this week. The next scheduled meetings are on March 31, to discuss Article IV reports for Greece and Sweden, and on April 4, for a “Financial System Stability Assessment” on China.

IMF Praises Argentina’s Economic Program

Kozack began her remarks by praising the Argentine government’s economic program, describing it as “a truly impressive stabilization effort.” She highlighted that inflation has declined due to significant fiscal consolidation and improvements in the central bank’s balance sheet.

She added that these efforts have been complemented by deregulation measures, market reforms, and the removal of distortions and certain controls.

“The reforms are starting to bear fruit. Despite macroeconomic adjustments, economic activity is recovering strongly, real wages are rising, and poverty is decreasing. This reduction in poverty also reflects, of course, a significant increase in social assistance for vulnerable groups,” she concluded.