Economy

Argentina Settles $2.6 Billion IMF Debt with Chinese Currency Swap Line

The Argentine government, under the leadership of Sergio Massa, successfully averted a financial crisis by settling substantial maturities amounting to $2.6 billion owed to the International Monetary Fund (IMF), its main lender. This payment was facilitated through a currency swap line with China and special drawing rights received from a disbursement in August, resulting in Argentina retaining minimal liquid cash reserves.

Following this payment, the central bank’s reserves fell to their lowest level since 2006, totaling $21.9 billion. The precise amount drawn from the $18 billion Chinese swap line or the recently approved $6.5 billion remains unspecified.

This financial maneuver occurs at a critical juncture ahead of the decisive runoff election on November 19 between Massa and Javier Milei. However, it casts uncertainty on Argentina’s future interactions with the IMF, particularly given Massa’s struggles to meet essential targets.

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