Argentina makes $1.9 bln payment to IMF in the middle of race for brand-new offer

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BUENOS AIRES– Argentina made a near$ 1.9 billion payment to the International Monetary Fund on Wednesday, 2 federal government sources stated, as the South American grains manufacturer races to concur a brand-new offer with the lending institution to revamp the over$40 billion it still owes.

The payment, part an unsuccessful loan offer from2018, was made with funds Argentina got from the IMF’s Special Drawing Rights( SDR) program, dispersed in August to assist members fight the financial effect of the coronavirus pandemic.

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” Today the payment of the maturity was finished with the IMF, which will be shown in the worldwide reserves,” stated one source from the reserve bank, who included reserves levels were at about$ 43.178 billion.

The nation’s main Telam news company verified that SDR funds would be utilized to assist in the payment of $1.885 billion. Argentina got the equivalent of $4.334 billion in SDRs, the IMF’s reserve possession, main sources informed Reuters.

The IMF stated it did not discuss specific members’ deals.

” Argentina has actually suggested its dedication to satisfying its commitments to the Fund,” an IMF representative stated in a declaration.

Argentina next owes the IMF $400 million in interest in November, and about $1.9 billion in principal in December, according to a schedule of its financial obligation commitments.

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The South American nation remains in the middle of settlements with the IMF to reorganize its financial obligation, in the middle of widespread inflation, political unpredictability, capital controls, high poverty line and a financial despair that has actually been honed by the pandemic.

” The payment to the IMF involves obligation. The method forward is to construct an arrangement in which we state what benefits Argentina,” Economy Minister Martín Guzman stated in radio declarations on Wednesday.

The federal government, which was rattled by an unpleasant main election loss previously this month, sent its 2022 draft spending plan to Congress recently, which it stated was based upon the presumption of a brand-new offer being reached with the IMF.

( Reporting by Jorge Iorio; Additional reporting by Rodrigo Campos; Writing by Walter Bianchi and Dave Sherwood; Editing by Diane Craft and Stephen Coates)

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