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Argentina to request IMF for an extended fund facility

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This will allow the country to develop a host of economic reforms and delay repayment of loan worth $44 billion

Argentina will request the International Monetary Fund for an extended fund facility programme, media reports said. The country is seeking a plan that will allow it to commit to a host of economic reforms on the back of delayed debt payments. 

The request for extension of the fund facility programme is part of the government’s plan to delay payments of $44 billion in dues. According to the International Monetary Fund “An EFF scheme is designed to provide long-term assistance to nations facing compared to assistance provided under the Stand-by Arrangement, assistance under an extended arrangement features longer programme engagement—to help countries implement medium-term structural reforms—and a longer repayment period.”

It is reported that the Argentine government is hoping to renegotiate loan payments to the International Monetary Fund. The country had borrowed the loan in 2018. The first repayment of the loan is due in 2021. 

Economy Minister Martin Guzman said in a statement “We have been doing very constructive work with the agency and the intention is to replace the current programme with a new one that is based on completely different principles, understanding that there is no restoration of macroeconomic stability without the recovery of economic growth.”

In fact, the country might present a macroeconomic programme to the Congress to determine the fiscal trajectory of the government, financial goals and international reserve targets until the next five years. That said, the Argentine government will also plan to present a bill to the Congress for granting approval of all future foreign debt issuances.

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