Argentina asks IMF for early release of US$50 billion credit line
- 6 years ago
Argentina's government has asked the IMF for the early release of a multi-billion dollar loan as an economic crisis continues to grip the nation.
The peso tumbled to a new record low following the request.
Ro Aram reports.
Argentina's economy has been on a downward spiral since early this year when Argentina asked for the first installment of the 50-billion U.S. dollar credit line.
At that time, Buenos Aires tried to dispel fears it was seeking an emergency rescue due to an imminent debt default, saying it was to help with a massive devaluation of its currency.
But the peso has continued to drop and inflation has also been rampant, triggering a more desperate response from the government.
In a televised address on Wednesday, the country's president said the request for speedy disbursements was aimed at calming turbulent markets.
"I want to announce that we have agreed with the International Monetary Fund to advance all the necessary funds to guarantee compliance with the financial program next year. This decision aims to eliminate any uncertainty that might have arisen around the worsening of the international context."
After the announcement the peso fell even further, marking its biggest one-day decline since 2015.
The currency has lost more than 45 percent of its value against the greenback so far this year, which has prompted Argentina's central bank to sell 500 million dollars in reserves just this week.
IMF chief Christine Lagarde says she has instructed staff to work with the Argentine authorities to strengthen the Fund-supported arrangement ...... .....and to reexamine the phasing of the financial program.
Ro Aram, Arirang News.
The peso tumbled to a new record low following the request.
Ro Aram reports.
Argentina's economy has been on a downward spiral since early this year when Argentina asked for the first installment of the 50-billion U.S. dollar credit line.
At that time, Buenos Aires tried to dispel fears it was seeking an emergency rescue due to an imminent debt default, saying it was to help with a massive devaluation of its currency.
But the peso has continued to drop and inflation has also been rampant, triggering a more desperate response from the government.
In a televised address on Wednesday, the country's president said the request for speedy disbursements was aimed at calming turbulent markets.
"I want to announce that we have agreed with the International Monetary Fund to advance all the necessary funds to guarantee compliance with the financial program next year. This decision aims to eliminate any uncertainty that might have arisen around the worsening of the international context."
After the announcement the peso fell even further, marking its biggest one-day decline since 2015.
The currency has lost more than 45 percent of its value against the greenback so far this year, which has prompted Argentina's central bank to sell 500 million dollars in reserves just this week.
IMF chief Christine Lagarde says she has instructed staff to work with the Argentine authorities to strengthen the Fund-supported arrangement ...... .....and to reexamine the phasing of the financial program.
Ro Aram, Arirang News.