(Reuters) – The International Monetary Fund (IMF) will discuss a new $ 20 billion loan for Argentina during an informal meeting next week, Bloomberg News reported Friday.
The IMF will discuss an extensive four -year fund facility of around 15 billion special drawing rights, according to the report.
A spokesperson for the IMF refused comments on the report. The Argentinian government did not immediately respond to Reuters’s request for comments.
The lower house of Argentina adopted a decree on Wednesday that was issued earlier in the month to support a new IMF program, so that the government can start with the IMF to undo the reserves of the Central Bank and possibly capital controls.
The decree, although it is not specified in dollars, said that the planned extensive fund facility would include a reimbursement period of 10 years with a respite period of four years and six months. It added that the new funds would be used to pay off the debts of the treasury with the central bank.
Argentina, who is fighting with negative net reserves for foreign currency after years of transferring, currency rises and regular standard values, is the largest borrower of the IMF with 22 loan programs to date. It still pays a deal of 2022 $ 44 billion back.
IMF spokesperson Julie Kozack On March 6, a news conference said that the IMF would continue to make good progress in the direction of a program, and we are working constructively with the Argentinian authorities in this respect. “
Once those negotiations have been completed, any final loan scheme would require the approval of the IMF Council of Governance.
But the procedures of the IMF for “exceptional access” – higher loan amounts that exceed the normal loan limits of a country – require more involvement prior to the board of directors.
This includes consultations between IMF staff and the board “Before they conclude discussions about a program and make a public statement about a proposed access level,” say the procedures.
(Reporting by Rajveer Singh Pardesi in Bengali; adaptation by Marguerita Choy)
