Argentina’s Massa Anticipates IMF Board Approval for $7.5 Billion Payout, Reports Reuters

By Jason Lange

WASHINGTON – Argentine Economy Minister Sergio Massa announced on Tuesday his expectation that the International Monetary Fund (IMF) board will approve the latest reviews of its substantial loan program on Wednesday, potentially providing $7.5 billion that the struggling nation critically requires.

This approval would follow a staff-level agreement reached by Argentina with the IMF in July, which was aimed at releasing the funds and completing the combined fifth and sixth reviews of the country’s challenging $44 billion loan program.

"We are convinced that tomorrow the fifth and sixth reviews will be approved, which will allow us to access a disbursement for Argentina of $7.5 billion," Massa stated to reporters during an event in Washington.

An inquiry into Massa’s statements did not elicit a response from the IMF.

Currently, Argentina, a significant exporter of grains with substantial reserves of lithium, shale oil, and gas, is grappling with soaring inflation, increasing poverty rates, and net foreign currency reserves that have fallen into negative territory, jeopardizing its payment capabilities.

Massa noted that a dramatic devaluation of the peso earlier this month is expected to drive up inflation in August, presenting a challenge for the government as it strives to regain public support ahead of the general elections on October 22.

"We understand that in August this will hurt people’s pockets," he acknowledged. "We aim to correct this with measures that we are going to announce within a few days so that in some way in September and October we return to more reasonable levels."