Argentina Acquires a Huge Debt With the IMF to ‘Calm the Market’, Caputo Acknowledges
Economy Minister Luis Caputo. X/ @Agitacion_
March 27, 2025 Hour: 1:22 pm
In essence, Argentina is seeking to borrow US$50 billion to pay off a previous US$46 billion debt to the IMF.
On Thursday, Argentine Economy Minister Luis Caputo acknowledged that President Javier Milei is negotiating loans worth US$20 billion with the International Monetary Fund (IMF).
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“The amount we have agreed upon is US$20 billion,” announced Caputo during the Annual Conference on Insurance Regulation and Supervision in Latin America, held at the Buenos Aires Stock Exchange.
In addition to negotiating an Extended Fund Facility Agreement with the IMF, Argentina is also seeking other loans from the World Bank, the Inter-American Development Bank (IDB), and the Development Bank of Latin America and the Caribbean (CAF).
Caputo acknowledged that these loans are intended to increase the monetary reserves of Argentina’s Central Bank from US$26 billion to US$50 billion. The right-wing minister vows that the consequences of increasing IMF debt will be different this time because Argentina “has already undertaken the necessary fiscal adjustment to restore macroeconomic order.”
After nearly two weeks of exchange rate pressures due to investor uncertainty regarding the details of the potential agreement with the IMF, Caputo asked IMF Director Kristalina Georgieva for “permission” to disclose the loan amount being negotiated. “It would be good if I could reveal the amount we have agreed upon, which the IMF staff will submit for approval by the Fund’s board,” he said.
The Argentine Congress has already approved a Milei’s decree that authorizes the Executive Branch to sign a new agreement with the IMF, which includes an adjustment economic program lasting four years, with periodic compliance reviews. In return, the agreement would provide Argentina with a 10-year loan, including a four-and-a-half-year grace period on principal payments and an annual interest rate of 5.63%.
The Milei administration has assured that the funds will be used to purchase Treasury bills held by the Central Bank and to pay part of the outstanding debt owed to the IMF, which currently amounts to US$41.3 billion.
teleSUR/ JF
Sources: EFE – Pagina 12
