The International Monetary Fund (IMF) has approved a $ 50 billion loan to Argentina, making it the largest loan in the organization's history. Members of the IMF board voted for a three-year loan.
The decision allows the Argentine authorities to immediately benefit from $15 billion, half of the amount or $7.5 billion will be used to support the budget, and the remaining $35 billion will be provided over the loan period subject to quarterly reviews by the board.
IMF Director Christine Lagarde said approval was a clear sign of the international community's confidence in Argentina, and the Argentine authorities have designed, conceived and take full ownership of the reform program. Lagarde added that Argentine reforms have four main objectives: achieving fiscal balance by 2020, lower inflation, ensuring that reforms do not adversely affect the poor and reduce pressure on the government balance of payments.
The Argentine president sought help from the fund in early May as the Argentine peso was in a state of collapse amid selling in emerging markets and worries about Argentina's economy. The peso has so far fallen more than 32 percent this year.
