IMF and Allies Forge Aid Plan for Argentina

The International Monetary Fund, in collaboration with the U.S., the World Bank, and the Inter-American Development Bank, is crafting an aid package for Argentina. The U.S. may loan its Special Drawing Rights to Argentina, and the IMF emphasizes Argentina's need to bolster reserves and policy reform for future stability.

The International Monetary Fund, in conjunction with the United States, the World Bank, and the Inter-American Development Bank, is finalizing an aid package for Argentina, IMF Managing Director Kristalina Georgieva revealed on Wednesday.

An option discussed involves the U.S. loaning its Special Drawing Rights to Argentina, similar to a transaction made by Qatar in 2023. U.S. Treasury Secretary Scott Bessent clarified that the arrangement is a credit swap line, not a cash infusion, sparking controversy among Republicans concerned about Argentina's trade with China.

Georgieva highlighted Argentina's substantial reform efforts under President Javier Milei as key to economic recovery, including measures to curb inflation and enhance the private sector. The IMF's primary aim is to strengthen Argentina's reserves, preparing it to meet debt obligations independently in the future.

(With inputs from agencies.)