Argentina has reached an agreement with the International Monetary Fund (IMF) for a $20 billion (€17.6 billion) loan.
Argentinian Economy Minister Luis Caputo announced the deal on Friday. The World Bank also revealed a support package worth $12 billion (€10.5 billion).
Additionally, the Inter-American Development Bank (IDB) will provide Argentina with up to $10 billion (€8.8 billion).
Argentina had been negotiating with the IMF since November. The IMF board approved the loan on Friday. The first $12 billion will be available on Tuesday, followed by an additional $2 billion in June.
Shortly before the IMF deal was confirmed, the World Bank introduced its own support package. The World Bank stated that the $12 billion package shows strong confidence in the government’s efforts to stabilise and modernise the economy. The funds will support reforms to attract private investments and promote job creation.
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In anticipation of the loans, Argentina will lift part of its long-standing currency controls. From Monday, the fixed exchange rate will be removed, allowing the peso to fluctuate freely between 1,000 and 1,400 pesos per dollar.
Under the leadership of ultra-liberal President Javier Milei, the government views this financial support as essential for monetary stability and to “eradicate inflation.”
President Milei expressed his enthusiasm for the new support package. In a national television address, he predicted that Argentina’s economy will grow “like never before” and that Argentina will become the country with the strongest economic growth over the next 30 years.
