The IMF’s board of directors will consider Argentina’s $44 billion bailout program next month By Investing.com
Investing.com — The International Monetary Fund’s (IMF) executive board is set to review Argentina’s existing $44 billion bailout program in the coming month, according to anonymous sources. This review is a vital process as Argentine President Javier Milei is in negotiations for a new loan.
A committee meeting is tentatively scheduled for early January, where a staff report on the 2022 agreement Argentina signed with the IMF will be evaluated. The sources chose to remain anonymous because the details are not yet public.
The review, known as an ex-post evaluation, will evaluate the design and implementation of the aid program. This type of evaluation is standard procedure for countries that have received so-called exceptional access loans, which are loans that exceed the IMF’s normal lending limits.
In an emailed response to queries, the IMF said a staff team was finalizing the report. The IMF described this as “standard and routine procedure for all IMF programs involving lending above normal borrowing levels.” However, the IMF did not comment on when the board’s review would take place.
Large loans like the one received by Argentina have recently faced criticism from the IMF’s internal watchdog. The watchdog pointed to flaws in the design and implementation of such loans, including a lack of consistency, clarity of expectations and benchmarks.
For Argentina, which is the IMF’s largest debtor, this review is a necessary step before the Milei administration can finalize a new deal. Earlier this month, an IMF spokesperson announced that talks with Argentina are already underway. Officials from Milei’s government suggested the new deal could include additional funding.
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