Argentina Expects IMF Cash After Fulfilling Demands, Macri Says

(Bloomberg) -- Argentina expects the next tranche of its loan from the International Monetary Fund, as it has fulfilled all the lender’s requirements, President Mauricio Macri said on Thursday.

Speaking briefly to reporters in the northern city of Cordoba, Macri said that he was focused on bringing stability to the economy following the financial turmoil triggered by the results of the Aug. 11 primary vote. The president was trounced by opposition leftist candidate Alberto Fernandez, who is now the clear favorite to win the presidency in October.

The IMF is currently assessing whether to pay out a further $5.4 billion to the government, the latest phase of its record $56 billion loan to Argentina. In the wake of the shock primary result and subsequent investor panic, Macri announced plans to renegotiate its debts, including with the IMF, as well as other drastic measures to contain the country’s escalating financial crisis. The lender has yet to comment on whether it will hand over its next scheduled disbursement.

On Sunday, the government implemented capital controls in an attempt to stop capital flight, a measure described as “capital flow management” by the IMF. Since then the peso has stabilized after falling over 20% in August. Argentines’ initial rush to withdraw cash from their dollar saving accounts has also dissipated.

In his comments to reporters, Macri expressed confidence that he could overturn the results of the primary on Oct. 27. “The election hasn’t happened yet and we have a lot of energy,” he said. “We can reverse it, that’s what we are doing.”

To contact the reporter on this story: Ignacio Olivera Doll in Buenos Aires at ioliveradoll@bloomberg.net

To contact the editors responsible for this story: Juan Pablo Spinetto at jspinetto@bloomberg.net, Bruce Douglas

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