La Derecha Diario Agreement with the IMF: the Government secures additional financing from the IDB and the World Bank
According to financial market estimates, the additional funds could enhance the country's macro stability
Meanwhile, as negotiations with the International Monetary Fund (IMF) progress, the Argentine government is also intensifying efforts with other multilateral organizations to obtain additional financing to bolster the reserves of the Central Bank.
Although the amounts have not been officially confirmed, the market estimates they could be around USD 5 billion.
Negotiations with international organizations
It is common practice for agreements with the IMF to be complemented with financial support from other institutions such as:
- World Bank
- Inter-American Development Bank (IDB)
- Development Bank of Latin America and the Caribbean (CAF)
- Fonplata
These organizations usually grant loans for infrastructure, development, and contingency projects.
Key meetings in Chile and Argentina
This week, two relevant meetings will take place to advance these agreements:
IDB meeting in Santiago, Chile:
- Pablo Quirno, Secretary of Finance, will participate in the annual event.
- Topics such as energy security, artificial intelligence, and regional integration will be addressed.
- The IDB has already announced a USD 200 million loan for the floods in Bahía Blanca.
Visit of the World Bank president to Buenos Aires:
- Ajay Banga, head of the organization, will meet with Javier Milei and Luis Caputo.
- New loans focused on digital infrastructure and renewable energies will be discussed.
The impact on the Argentine economy
According to financial market estimates, the additional funds could enhance the country's macroeconomic stability.
- A report from the Swiss bank UBS highlighted that external financing is key to paying the debt and strengthening reserves, facilitating an eventual removal of capital controls.
- Citi projected that the total financial assistance package could range between USD 15 billion and USD 20 billion, with a possible injection of USD 5 billion from the World Bank and the IDB.
- A technical report from the IMF indicated that disbursements from multilateral organizations in 2025 should reach USD 1.3 billion.
Background of complementary financing
There are precedents of additional assistance in agreements with the IMF:
2018 Stand-By Loan (Macri Government):
- USD 2.5 billion from the IDB
- USD 1.75 billion from the World Bank
- USD 1.4 billion from the CAF
2022 Extended Fund Facility (EFF) Program:
- USD 2.2 billion from the World Bank and the CAF
These precedents reinforce the possibility that Argentina will receive additional financing exceeding USD 5 billion, which could facilitate the removal of exchange controls and improve access to international credit.
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