IMF Confirms $20 Billion Program Talks With Argentina

The International Monetary Fund (IMF) confirmed on Friday that its ongoing discussions with Argentina involve a $20 billion Extended Fund Facility (EFF), Reuters reports. This follows the Argentine government's announcement of the program on Thursday. The IMF had initially declined to confirm the amount.

This marks Argentina's 23rd IMF program since joining the organization in 1956.

"Any agreed package and its phasing is subject to approval by the IMF’s Executive Board," an IMF spokesperson stated. A source familiar with the matter indicated that Argentina is seeking the disbursement of at least half of the total amount at the program's commencement.

However, some IMF board members are reportedly wary of repeating the perceived leniency of the 2018 program, which also featured front-loaded disbursements and drew internal criticism for its favorable terms for Argentina.

An EFF is designed to assist countries experiencing "serious payment imbalances because of structural impediments or slow growth," according to the IMF. The program can also support policies aimed at correcting structural imbalances over an extended period.

The current program has been requested for a duration of four years, with the Argentine government aiming for a 10-year repayment period. The program will be subject to periodic reviews, and cash disbursements will likely be made in tranches, contingent upon compliance with established goals.