The International Monetary Fund (IMF) will discuss a new $20 billion loan for Argentina during an informal meeting next week, as reported by Bloomberg News. The IMF is set to consider a four-year extended fund facility of approximately 15 billion Special Drawing Rights.
An IMF spokesperson declined to comment on the report, and the Argentine government did not respond immediately to requests for comment.
On Wednesday, Argentina's lower house approved a decree supporting a new IMF program, which will enable the government to begin negotiations with the IMF to bolster central bank reserves and potentially lift capital controls. The decree outlines a repayment period of ten years, with a grace period of four years and six months, though it does not specify the amount in dollars that the planned extended fund facility would involve. The new funds are expected to be used to settle Treasury debt with the central bank.
Argentina currently faces negative net foreign currency reserves due to years of overspending, currency crises, and frequent defaults. It is the IMF's largest borrower, having entered into 22 loan programs to date and still repaying a $44 billion agreement established in 2022.
On March 6, IMF spokesperson Julie Kozack stated that the organization is "continuing to make good progress toward a program," emphasizing constructive collaboration with Argentine authorities.
Any final loan arrangement will require approval from the IMF Executive Board. The IMF's procedures for larger loan amounts that exceed a country’s standard borrowing limits involve prior Executive Board involvement, including consultations with IMF staff before concluding discussions on the program or making any public statements regarding the proposed level of access.