The International Monetary Fund executive board approved an increased loan package for Argentina worth USD 56 billion to help stabilize the crisis-battered country’s economy and currency.
The IMF said the approval released USD 5.7 billion to the government immediately, but it also includes tougher conditions.
The country secured a USD 50 billion IMF loan in June, and had received USD 15 billion already, but as conditions worsened Buenos Aires had to go back to the lender for additional support with faster disbursement.
With the latest installment, the IMF has released just over USD 20 billion to President Mauricio Macri’s government. “Despite the challenging environment the government has proactively strengthened its policy plans,” IMF Managing Director Christine Lagarde said in a statement.
Argentina’s woes were brought on by a rapid loss of confidence in its currency from April, which exacerbated the downturn already underway due to the severe drought.