Wall Street expects Argentina to receive up to $20 billion from the IMF, aiding President Milei’s austerity efforts. The funds may include $5-$10 billion in disbursements for 2025, potentially allowing for the lifting of currency controls. The negotiations with the IMF are in the final stages, with Milei’s administration aimed at stabilizing the economy and returning to international markets.
Wall Street analysts anticipate that the International Monetary Fund (IMF) may extend a loan of up to $20 billion to Argentina, which would play a significant role in supporting President Javier Milei’s austerity measures. Financial institutions such as UBS Group AG, Morgan Stanley, and Bank of America Corp. suggest that disbursements could range from $5 billion to $10 billion in 2025. Argentina is not required to begin making principal repayments on previous loans until next year, which could strengthen the central bank’s reserves and facilitate the easing of currency and capital controls.
In summary, the potential IMF deal signifies a crucial step for Argentina as it navigates economic challenges. President Milei’s administration plans to use the funds primarily to reduce debt with the central bank, enhancing its fiscal position. The ongoing negotiations aim to finalize a new program that could stabilize the economy and re-establish Argentina’s presence in international capital markets, following a history of defaults.
Original Source: www.bnnbloomberg.ca
