The International Monetary Fund considers Argentina's request for an initial 40% disbursement from the $20 billion loan program it is negotiating to be reasonable, according to IMF Managing Director Kristalina Georgieva. She acknowledged Argentina's efforts to address long-overdue economic reforms and indicated that the country has earned this support.
Georgieva anticipated that negotiations would conclude before the upcoming IMF and World Bank spring meetings scheduled for April 21-26, noting that the markets are closely monitoring the discussions.
Argentina's Economy Ministry disclosed the request for a significant first disbursement on Sunday. Economy Minister Caputo stated that the country has eliminated its fiscal deficit and reduced public spending, while also working to enhance central bank reserves and lift foreign exchange restrictions that impede business and investment.
Caputo explained the rationale behind the larger request, highlighting that first disbursements typically range from 20% to 30% in exchange for meeting monetary and fiscal targets. He emphasized that Argentina has already fulfilled the necessary requirements.
Georgieva mentioned that staff-level negotiations are ongoing with Buenos Aires but expressed confidence in reaching a deal for a four-year program to succeed the previous $44 billion lending arrangement established in 2018. Once a staff-level agreement is finalized, it will require approval from the IMF's executive board.