The International Monetary Fund (IMF) approves the latest review of Argentina’s $44 billion aid program, releasing $4.7 billion in funds.
Although important goals of the program were not achieved, the fund decided to exceptionally authorize the payment “due to serious political setbacks,” the executive board of the Washington-based financial organization said on Wednesday. Argentina is said to have received an extension until the end of the year in order to achieve the set goals. The IMF initially did not provide further details about the changes.
In order to pay out individual tranches, the South American country, which has been hit by a severe economic crisis, must prove that it meets the reform requirements required by the IMF. The new Argentine government and the IMF agreed about two weeks ago on the seventh review of the program, which was delayed by the change in government after President Javier Milei took office on December 10th.
“The new government is taking bold steps to restore macroeconomic stability and address long-standing obstacles to growth,” said IMF Executive Director Kristalina Georgieva. The inconsistent policies of the previous government “left a difficult legacy”.
Wednesday’s approval of the latest funding brings disbursements under the $44 billion program to $40.6 billion, the fund said. Argentina is therefore the IMF’s largest debtor.