The IMF has already confirmed that the credit will be freely available although it's still uncertain what the initial disbursement will be
The IMF has already confirmed that the credit will be freely available. The first disbursement would reach 8 billion dollars, although Caputo insisted on a frontload of up to 15 billion, something unprecedented even for war contexts like Ukraine.
"There is no precedent for a 70% advance of the total approved," sources close to the negotiation tell Infobae.
The Board of the International Monetary Fund (IMF) will approve today a new Extended Fund Facility credit for 20 billion dollars for Argentina. The financing will be used to strengthen Central Bank reserves, pay debt maturities with the IMF itself, and advance in the opening of the financial clamp.
The negotiation, led by Javier Milei and Luis Caputo, managed to overcome internal resistances within the organization thanks to the decisive support of Donald Trump's administration.
For weeks, the Argentine efforts encountered obstacles from members of the technical staff and representatives from countries like Germany, Switzerland, the Netherlands, and Japan. However, the IMF's managing director, Kristalina Georgieva, aligned with the Argentine government's vision from her first meeting with Milei in Davos. "She always played well for us," they confess close to the president.
Nevertheless, Trump's intervention was crucial. His Treasury Secretary, Scott Bessent, received Caputo, Santiago Bausili (Central Bank), and José Luis Daza (Economic Policy) on a Sunday at noon, opening an exceptional diplomatic window. Additionally, Bessent will travel to Buenos Aires on Monday, April 14, after the markets open, to meet with Milei and his cabinet.
The credit line, which will extend for four years, aims to reorder the fiscal and monetary front. Although Milei is in a position to comply with zero issuance and the required fiscal deficit, doubts persist about targets related to exchange rate, net reserves, structural reforms and the lifting of the clamp, aspects that require legislative agreements.
Argentina has a long and conflictive history with the IMF. From the times of Bernardo Grinspun to Sergio Massa, almost no program was fully complied with. That history fueled the weariness within the organization, where today greater institutional commitment is sought before advancing with new disbursements.
The Board's decision will be announced today in the afternoon (Washington time) and will be made official in Argentina later at night, which will mark a new chapter in the relationship between the libertarian government and the IMF, now with the strategic support of Washington.
