IMF sanctions $5.4 billion to Argentina in standby loan deal

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IMF sanctions $5.4 billion to Argentina in standby loan deal

On Friday, the 12th of July 2019, the International Monetary Fund (IMF), sister-organization of World Bank, headquartered in Washington, founded to assist under-developed and developing countries financially and to foster global monetary cooperation, said that the entity had sanctioned $5.4 billion in cash to Argentina following approval of a fourth review of a standby credit deal with the grief-sickened South American nation, currency of which had devalued more than 66 percent over the last year against American dollar.

In fact, latest monetary injection aimed to revive Argentine economy, the 3rd largest in South America, had been a part of $57 billion IMF financing agreement approved last year. Nonetheless, the agreement came with clauses likes of unpopular spending cut which had been ravaging businesses and households in Argentina, which had already been vying to vent out an inflation of forty percent and a higher recession.

Adding that the Argentina’s financial bodies had been cooperating faithfully with IMF’s policy program so far, IMF said in a statement on Friday (July 12th), “The Argentine authorities continue to show a strong commitment to their economic policy program, meeting all the applicable targets under the Fund-supported program”.

If truth is to be told, it remained uncertain how much of this fresh cash flow aimed at soothing markets and boosting up investors’ confidence would drift into Argentine economy ahead of a presidential election as early as in October this year, as the embattled Argentine President, Mauricio Macri had been seeking a second term despite a wave financial storms under his term, likes of which the crisis-sickened LatAm economy never went through, analysts suggested.