Economy

IMF board approves $45 billion Argentina program, say sources

It replaces a failed $57 billion program from 2018, the largest in the Fund's history, for which Argentina still owes over $40 billion.

The International Monetary Fund logo is seen inside its headquarters at the end of the IMF/World Bank annual meetings in Washington, U.S., October 9, 2016. Photo: REUTERS/Yuri Gripas/File Photo

The International Monetary Fund‘s executive board on Friday approved a $45 billion program for Argentina after more than a year of negotiations, two sources with direct knowledge said, allowing the South American grains exporter to avoid a costly default with the Washington-based lender.

The agreement, which follows a staff-level agreement earlier in March, marks the 22nd IMF program for Argentina since it joined the Fund in 1956.

READ ALSO: IMF deal (y otras cositas más) puts Argentina’s government on the verge of an internal rift

It replaces a failed $57 billion program from 2018, the largest in the Fund’s history, for which Argentina still owes over $40 billion.

READ ALSO: Argentina’s GDP rose 10.3%, the biggest advance in 17 years

The new program would see funds disbursed over 30 months and a new repayment schedule between 2026-2034. It includes an economic program to reduce the fiscal deficit, bolster reserves, cut huge energy subsidies and push up real interest rates.

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