IMF OKNS $5,4 Billion FOR CASH-STRAPPED Argentina.
The executive board of the International Monetary Fund (IMF) announced on Friday that Argentina would get a $5.4 billion loan as part of a $44 billion loan package. Argentina is a South American country that is currently experiencing a dire economic situation. The largest assistance program currently being implemented by the IMF is aimed at Argentina.
The entire amount of money previously provided to Argentina since the start of the aid program in March 2022 has increased by this latest installment to $28.9 billion. Argentina's economy expanded by 5.2 percent in 2022, a slower rate than in 2021 but nevertheless the second year in a row the country has experienced growth, the first such stretch since 2010–2011. But with an inflation rate of 94.8 percent, the nation was unable to profit from this uptick in activity.
Most items now cost twice as much as they did at this time last year due to the surging inflation, which is the first time this has happened since the early 1990s that inflation is back near triple digits. Argentina's foreign currency debt was downgraded by Fitch Ratings to one rung above default a week ago.
A short time following a government edict requiring local public sector entities to exchange their debt denominated in foreign currencies for debt denominated in the native currency, the peso, the debt's downgrade from CCC- to C signals that the rating agency feels a default is "imminent."
Two days ago, Argentine President Alberto Fernandez met with US President Joe Biden in the Oval Office and expressed his gratitude to Biden for the US support of loans at international lending institutions like the IMF.
The country with the most IMF voting rights in the US. The 13th agreement between the IMF and a South American nation since 1983 was reached in March 2021 and establishes benchmarks for the nation to combat persistent inflation.
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