| 21 April 2024, Sunday |

Argentina makes IMF payment as deal talks grind on

The government of Argentina claims to have paid the IMF $2.7 billion using its current stock of IMF reserve assets as well as Chinese currency. The IMF stated on Friday that Argentina is current on its payment obligations.

Argentina’s economy ministry said via a spokesman that the June payments were made “without using dollars,” instead using the nation’s SDR and CNY assets from the fund. The exercise, which used up Argentina’s $1.6 billion in SDRs, highlights how precarious Argentina’s currency situation has grown.

The IMF did not respond to requests for comment on the payment method. Reuters reported Thursday the amount and sources of the payment, citing people with direct knowledge.

“IMF staff and the Argentine authorities will continue to advance their work in the coming days, with the aim of reaching agreement on the fifth review of the Fund-supported program,” the fund said separately on Friday, after a “standard informal Executive Board briefing on Argentina” was held Thursday.

Both parties are locked in talks to speed up disbursements from their $44 billion program and ease economic targets, as a major drought continues to hammer vital grains exports.

Argentina’s economy ministry said a team will travel to Washington early next week to continue negotiations.

  • Reuters