In the midst of the debt crisis in Argentina, the International Monetary Fund (IMF) has come in as a major financier behind Latin America’s third largest economy.
The IMF will remain in close contact with the government authorities and continue to stand in the current challenging times to the country, said an IMF spokesman yesterday.
The debt crisis had come to a head in recent days. All three major rating agencies downgraded the country, and yesterday the government took capital controls. For example, large exporters now require the central bank to buy foreign currency and to transfer foreign currency abroad.
$ 57 billion from the IMF
The peso has lost more than 20 percent of its value since August 11, against the dollar. The pro-business president Mauricio Macri had lost a primary election against his leftist challenger Alberto Fernandez. This is now considered the favorite for the presidential election in October. Fernandez collaborates with former President Cristina Fernandez, whose once interventionist policy was feared in the financial markets.
Macri tries by various steps to ensure the solvency of the country. Among other things, the terms of government bonds and IMF loans are to be extended. The planned measures will look at the IMF in detail, said the spokesman. The Monetary Fund has loaned Argentina $ 57 billion.
