IMF to Review Timing of Payout for Argentina's Credit Line
(Bloomberg) -- The International Monetary Fund will review the timing for the disbursement of the remaining funds from a $50 billion credit line to Argentina in the aftermath of a sell off in international markets.
“In consideration of the more adverse international market conditions, which had not been fully anticipated in the original program with Argentina, the authorities will be working to revise the government’s economic plan with a focus on better insulating Argentina from the recent shifts in global financial markets," Christine Lagarde, the IMF’s managing director said in a statement on Wednesday.
IMF staff will work with Argentine authorities to “strengthen the Fund-supported arrangement and to reexamine the phasing of the financial program," according to Lagarde’s statement.
Earlier on Wednesday President Mauricio Macri said that he had asked for a faster payout from the Fund in an attempt to ease the nation’s financial crisis. Macri’s government is under pressure to reassure investors that Argentina will have enough money to fund itself through next year without incurring more debt.
Officials had hoped obtaining the IMF credit line in June would calm nerves and buy the government some time. Instead a rout in the currency extended to 45 percent for the year, stoking inflation and dragging the economy toward recession.
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