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Montevideo, June 20th 2018 - 09:27 UTC

IMF and Argentina agree on a 36-month US$ 50bn Stand-By Arrangement

Friday, June 8th 2018 - 07:30 UTC
Full article 4 comments

The Argentine authorities and IMF staff have reached an agreement on a 36-month Stand-By Arrangement (SBA) amounting to US$50 billion (equivalent to about SDR 35.379 billion or about 1,110% of Argentina’s quota in the IMF). This staff-level agreement will be subject to approval by the IMF’s Executive Board, which will consider Argentina’s economic plan in the coming days. Read full article

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  • Marti Llazo

    They're going to need it, what with massive deficit spending continuing and having to pay some US$25 billion next year in debt coming due.

    Jun 08th, 2018 - 08:07 pm - Link - Report abuse 0
  • Enrique Massot

    This is a significant effort to save the skin of Mauricio Macri, the darling of international financial community that has so far been heavily investing in Argentina.

    Indeed, even the terms of the $50-billion dollar agreement postpone reimbursement to the government to be elected in October 2019, giving the Macri government as many re-election chances as possible.

    However, the IMF worries about getting paid back--in order to ensure it, it has a number of requirements. Those are the usual ones: to press the lemon until it gives its last juice drop. Stimulation of the domestic productive sector and expansion through consumption is not in the cards--it never has been. More inflation and a contraction of the real economy will be the result.

    The Argentina neoliberals had once more shown to be so utterly rapacious, they are not even able to produce a sustainable model able to perpetuate through time. Just like the IMF, their logic is to squeeze as much as possible for them and their associates in the international finance where they also have stakes, until the dough--and the credit--is all gone.

    Not a single happy prospect.

    Jun 09th, 2018 - 05:06 pm - Link - Report abuse 0
  • chronic

    Hey Christie, Bernie says thanks!

    When is your sentencing hearing?

    Jun 10th, 2018 - 04:02 pm - Link - Report abuse -1
  • Enrique Massot

    The IMF won't “give” Argentina $50 billion US dollars.

    It will begin by sending $15 billion before the end of June, and subsequent disbursements will be conditional to Argentina fulfilling conditions that haven't yet been disclosed.

    In reality, what the champions of 'less state and more free market' have done is to ensure IMF public funds will enable Argentina to service its existing foreign debt, held by private investors.

    As those champions say, let's privatize profits and socialize the losses.

    Jun 10th, 2018 - 09:28 pm - Link - Report abuse 0

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