Argentina signs deal with IMF to refinance de

By Bala Chambers

LONDON (AA) - Argentine authorities confirmed Thursday that a deal with the International Monetary Fund (IMF) was signed to refinance around $44 billion in debt.

"After intense negotiations, the national government managed to seal an agreement with the IMF,” according to a statement by the Economy Ministry.

Argentina's government will send the bill to Congress which is expected to be debated in the lower house next week.

The deal seeks to "continue generating the necessary stability conditions to address existing structural challenges and strengthen the foundations for sustainable and inclusive growth,” it said.

Authorities announced that both parties reached an "Extended Fund Facility” (EFF) which includes 10 revisions that will be "carried out on a quarterly basis for two and a half years."

"The first disbursement will be made after the approval of the program by the IMF board. The rest of the disbursements will be made after each review is completed. The repayment period of each disbursement is 10 years, with a grace period of 4 and a half years, which implies starting to pay the debt from 2026 and until 2034."

The bill that will be sent to Congress "includes as annexes all the documents that make up the agreement," specifically "the Memorandum of Economic and Financial Policies and the Memorandum of Technical Understanding."

The government reached a deal with the IMF to refinance a 2018 historic loan during the presidency of Mauricio Macri, when Argentina received a $57 billion loan because of a deep economic crisis.​​​​​​​

The IMF said: "The EFF, with requested access of SDR (Special Drawing Rights) 31.914 billion (equivalent to US$ 45 billion or 1000 percent of quota), aims to provide Argentina with the balance of payments and budget support to address the country’s most pressing economic challenges and to enhance the prospects of all Argentines by implementing measures designed to promote growth and protect essential social programs.

Any deal will need to be approved by Congress and the Executive Board of the IMF.

President Alberto Fernandez informed Congress on Wednesday that if the deal is approved, Argentina will begin paying the IMF in 2026 and finish in 2034.