Argentina Secures $1 Billion Loan to Bolster Currency Reserves

Argentina's central bank has secured a $1 billion loan at 8.8% interest from five international banks. This move aims to support the country's foreign currency reserves and liberalize the exchange market under President Javier Milei. Despite economic challenges, investor confidence shows signs of improvement.

Argentina's central bank announced on Friday the acquisition of a $1 billion loan from five foreign banks, aiming to strengthen the nation's foreign currency reserves.

This financial agreement, set at an interest rate of 8.8% over 2-1/3 years, is designed to enhance currency management as President Javier Milei works towards foreign exchange market liberalization.

The central bank noted significant interest from global banks, highlighting a positive shift in international credit market access. However, Argentina continues to grapple with high inflation and increasing poverty rates, despite a drop in country risk perceptions.

(With inputs from agencies.)