Argentina gets first $15 bn from IMF

Argentina on Friday received $15
billion, the first tranche of a $50 billion loan from the International
Monetary Fund to help stabilize its fragile economy, the South American
nation’s central bank said.

Following a currency crisis in April and May, the IMF announced the $50
billion standby loan in early June after Latin America’s third largest
economy sought help to bolster market confidence.

The peso plunged to a record low this month, and since the start of the
year the currency has dropped more than 30 percent against the dollar.

On Wednesday the Washington-based IMF approved the $50 billion aid package.
It said the first $15 billion will contribute to budget support while the $35
billion balance will be “precautionary.”

The fund said that its assistance would back efforts by Buenos Aires to put
public debts on a sustainable path, reduce the need for financing and tackle
inflation while strengthening the central bank’s independence, while
maintaining social spending.

Argentina has a bitter history with the global crisis lender, which many
Argentines view as having imposed tough conditions that worsened economic
pain 17 years ago.