MercoPress. South Atlantic News Agency

Argentine granted CAF loan to face IMF maturities

Milei did ask for the release of a US$ 6 billion swap agreed upon with former Economy Minister Massa

The Argentine Government of President Javier Milei has been granted a loan of nearly US$ 1 billion by the Development Bank of Latin America and the Caribbean (CAF) to face maturities with the International Monetary Fund (IMF) later this month.

Argentina, the fund's largest debtor with US$ 44 billion in the red and reserves below zero, is due to make a US$913 million payment on Dec. 21. In the past, it has resorted to loans from the CAF and a swap involving Qatar and China's Central Bank to afford its most recent IMF commitments.

Economy Minister Luis Caputo reportedly met on Monday with CAF's Executive President Sergio Díaz-Granados. All CAF financing must be approved by its board of directors.

According to Ámbito, the possibility of CAF helping Argentina this time around had also been discussed with then-Economy Minister and presidential candidate Sergio Massa.

Between December and February, Argentina faces maturities for more worth over US$ 6.2 billion, of which US$ 3.7 billion are payments to the IMF, US$ 1 billion will be destined to other international credit organizations, and US$ 1.5 billion for government securities.

Between 2024 and 2026 the Government will face maturities above US$ 53 billion (excluding Non-transferable Bills, Collateralized Bills, and Guarantees), which is tantamount to more than US$ 17.8 billion per annum.

With Argentina so deep in dire straits and having been previously helped out by China, a picture of President Milei kneeling before his Chinese colleague Xi Jinping begging for assistance went viral Thursday. But it was determined to be a fake image, created by Artificial Intelligence (AI).

“The lion Milei, kneeling to the Chinese president. That's what these cardboard liberals are, a farce,” wrote an internet user who posted the photograph.

However, the truth remains that after speaking ill of China during his campaign, Milei did send a letter to Xi Jinping asking him to release a US$ 6 billion swap agreed upon with Massa.