BUENOS: Argentina has stated that its new arrangement with the International Monetary Fund (IMF) to repay USD 44.5 billion in debt to the lending agency is based on refinancing rather than austerity measures.
According to reports, Argentine Economy Minister Martin Guzman told reporters at a press conference that the agreement calls for new finance to assist fulfil current obligations and shore up international reserves, as well as cut inflation and the fiscal deficit.
"Argentina was able to achieve an agreement with the International Monetary Fund on policy that did not contain any austerity measures. Simultaneously, it envisions a steady decrease of the fiscal deficit based on an improving economy "Guzman explained.
According to the agreement, the IMF will provide Argentina with $44.5 billion in new financing over two and a half years, with payouts every three months. The agreement must still be ratified by Argentina's Congress and the IMF Board of Directors.The government anticipates a USD 5 billion rise in overseas reserves as a result of the agreement in 2022.
Argentina's financial problem was passed on to the current government by its predecessor, which signed the world's largest loan agreement with the International Monetary Fund (IMF).