IMF reaches preliminary deal with Argentina on a $20-B bailout

BUENOS AIRES, Argentina — The International Monetary Fund on Tuesday said it had reached a preliminary, staff-level agreement with cash-strapped Argentina on a $20-billion bailout package, providing a welcome reprieve to libertarian President Javier Milei as he seeks to overturn the country’s old economic order.

As a staff-level agreement, the deal still requires final approval from the IMF’s executive board.

The deal delivers a lifeline to President Milei, who has slashed inflation and stabilized the economy after years of turmoil with a harsh austerity program praised by the IMF.

READ: IMF confirms Argentina has requested new $20-B loan program

But without cash from the international lender, he has been unable to rebuild the scarce foreign exchange reserves he inherited, which he needs to repay debts and lift Argentina’s strict currency controls.

“The agreement builds on the authorities’ impressive early progress in stabilizing the economy,” the organization said in a statement announcing the agreement on the loan under a 48-month arrangement.

This would mark the 23rd rescue package in crisis-stricken Argentina’s history.

The country is already the fund’s biggest debtor with more than $40 billion owed for a previous program.