NEW YORK: The International Monetary Fund (IMF) has approved the second review of Argentina’s US$44bil (RM204bil) programme, passing a key hurdle even as managing director Kristalina Georgieva warned the government against creating multiple exchange rates.
The IMF’s executive board granted a disbursement of about US$3.8bil (RM18bil), which will cover upcoming payments Argentina owes the institution from a previous programme that failed to stabilise the economy.
The board also approved two waivers, something it hadn’t done with Argentina since the previous government secured a record IMF loan in 2018.,
The first waiver was a technical issue because the Argentine government hasn’t yet published fiscal data through September that the board needed to review.
Those figures will arrive later in October, according to IMF officials who spoke on background.
The second waiver stems from a key policy implemented by economy minister Sergio Massa. He created a temporary exchange rate for soybean exporters in September to boost exports and build up cash reserves. Countries with IMF programmes must seek waivers for “multiple currency practices”. — Bloomberg