IMF board approves US$7.5-billion disbursement for Argentina

The International Monetary Fund's (IMF) executive board of has "approved a disbursement of US$7.5 billion" corresponding to the fifth and sixth reviews of Argentina's extended fund facility agreement, a spokesman for Economy Minister Sergio Massa confirmed on Wednesday afternoon.

"It was unanimous," a spokesman for the minister and presidential candidate for the ruling Peronist party said in a message sent to journalists via WhatsApp.

The IMF has not yet confirmed the development.

Massa is due to meet this afternoon with IMF Managing Director Kristalina Georgieva for talks that will "review the entire disbursement procedure."

The government is expected to request that additional funds outlined in the IMF are brought forward by the multilateral lender in order to shore up the economy.

Under Argentina's credit programme with the IMF, the country receives US$44 billion over a 30-month period in exchange for the increasing of Central Bank international reserves and a gradual reduction of the fiscal deficit.

Speaking on Tuesday at a press conference, Massa said Argentina is facing "perhaps the most tragic year in terms of the economy" due to a devastating drought that has slashed hundreds of millions of dollars of GDP.

He also confirmed US$1.3 billion in additional financing via two loan packages from the World Bank and Inter-American Development Bank.

Massa and Georgieva are due to hold a press conference later on Wednesday.

– TIMES