Argentina Discusses New IMF Debt Deal

BUENOS AIRES (Reuters) – Staff from an International Monetary Fund (IMF) mission are in Argentina discussing a possible new debt deal, according to a source from the economy ministry. This has been confirmed as a follow-up to comments made by the IMF chief regarding favorable conditions for negotiations.

Argentina’s government is pursuing a new loan this year, in addition to the $44 billion renegotiated by the previous administration in 2022. They hope that this additional funding will help restore market confidence.

The source, who spoke on condition of anonymity and is not authorized for media comments, indicated that optimism is rising.

Libertarian President Javier Milei’s efforts to cut public spending, rebuild foreign reserves, and reduce triple-digit inflation have improved Argentina’s potential for securing fresh funding, according to investors.

On Sunday, IMF chief Kristalina Georgieva remarked that “the deficit wiped out, inflation down, and growth rebounding” indicate strong prospects for progressing talks. Her comments followed a meeting with Milei’s economic team in Washington.

A new debt arrangement could assist in unlocking additional funds to enhance the central bank’s hard currency reserves.