Argentina delegation travels to meet with IMF in US -source
11:48 am Tuesday, July 11th, 2023
By Jorge Otaola
BUENOS AIRES (Reuters) -An Argentine team is traveling on Tuesday to the United States to meet with officials from the International Monetary Fund (IMF) to negotiate terms to relax the agreement between the two, a source at Argentina’s economy ministry said.
Argentina, Latin America’s third-largest economy, is looking for fresh cash injections through the end of the year and to modify requirements imposed by the IMF under the framework of a $44 billion loan.
The trip comes as Argentina faces an economic crisis, with inflation expected to hit 142% this year and central bank reserves dwindling.
“Yes, a team is traveling (Tuesday),” the source, who is involved in the decision, told Reuters.
The IMF did not immediately respond to a request for comment.
The fund on Friday said talks are focused on aiding Argentina in rebuilding foreign cash reserves and improving fiscal stability following the economic hit from a fierce drought.
The grains-producing giant lost out on an estimated $20 billion due to the drought’s impact on soybean and corn crops, Argentina’s main source of export income.
Last month Argentina was forced to make a $2.7 billion debt payment to the IMF using the last of its Special Drawing Rights (SDRs) and a Chinese yuan currency swap to avoid further weakening its U.S. dollar reserves.
The government also postponed $2.6 billion in payments set to come up in July, including $1.3 billion due last Friday, until the end of the month.
(Reporting by Jorge Otoala; Additional reporting by Rodrigo Campos; Writing by Kylie Madry; Editing by Sarah Morland, Alexander Villegas and Mark Porter)
