Argentina Wants More Than 40% Of The $20 Billion IMF Payment

In a $20 billion agreement, Argentina is requesting more than 40% of the IMF’s payout, citing efforts to stabilize the economy and implement fiscal reforms.

Under a new $20 billion program it is negotiating with the International Monetary Fund (IMF), Argentina is aiming for an initial disbursement that exceeds 40%, Economy Minister Luis Caputo disclosed on Sunday.

Speaking on television, Caputo emphasized the government’s accomplishments in reducing public spending and eradicating the fiscal deficit. He claimed that the goals of these actions are to reduce foreign exchange limitations that have long been viewed as barriers to investment and business, as well as to increase central bank reserves.

“Traditionally, these are made in exchange for monetary and fiscal targets, which is why we’ve asked for more,” Caputo said. “First payouts typically range from 20% to 30%, but we’ve completed everything already.”

The planned four-year contract comes after an IMF accord for $44 billion that was reached in 2018. Still lacking, though, is the IMF’s board of directors’ ultimate approval. If approved, the larger-than-normal initial payout may give Argentina much-needed financial support as it works to strengthen its economy and overcome economic obstacles.