IMF Approves Preliminary $20 Billion Lifeline for Argentina

The International Monetary Fund has reached a preliminary agreement with Argentina for a $20 billion bailout, offering support to President Javier Milei's reforms. The deal awaits IMF executive board approval and is crucial for stabilizing Argentina's economy and meeting its foreign debt obligations.

The International Monetary Fund (IMF) announced on Tuesday a preliminary agreement with Argentina for a $20 billion bailout, aimed at aiding the country's libertarian President Javier Milei as he endeavors to overturn its existing economic framework.

As the IMF's executive board is expected to review the agreement soon, the deal presents a potential lifeline for Milei, who has enacted free-market reforms to slash inflation and stabilize Argentina's economy. Despite previous reservations, the IMF commended Milei's efforts, noting his achievement in cutting the fiscal deficit and his commitment to fiscal responsibility.

Although the agreement is poised to help Argentina stabilize its dwindling foreign exchange reserves, immediate cash flow is crucial for repaying debts and lifting strict currency controls that limit foreign investment. Negotiations were arduous, but authoritative voices within the IMF acknowledged Argentina's progress towards economic stabilization.

(With inputs from agencies.)