Argentina to request 'stand-by' deal from IMF -Treasury Ministry

Argentina to request 'stand-by' deal from IMF -Treasury Ministry

18:12 - Argentina will request a “stand-by” financing arrangement (SBA) from the International Monetary Fund (IMF) as the country seeks a deal to calm volatile financial markets, the Treasury Ministry said in a statement on Wednesday.

Treasury Minister Nicolas Dujovne met with IMF Western Hemisphere Director Alejandro Werner in Washington on Wednesday, beginning financing negotiations announced on Tuesday after the peso currency plunged in recent weeks due to rampant inflation and a general outflow of funds from emerging market economies.

According to the IMF’s website, SBAs are most often used by middle-income countries to help them “emerge from crisis” and restore growth. Countries that borrow money under this framework must repay them within 3-1/4 and five years of disbursement.

Investment bank BTG Pactual said in a note on Wednesday that an SBA would be more negative for Argentina than other IMF financing options, given that it is granted to countries that show “signs of high insolvency risk and implies more thorough conditions.”

Negotiations for these types of deals often take up to six weeks, the ministry said.

(Reporting by Eliana Raszewski and Luc Cohen; Editing by Leslie Adler and Sandra Maler) es un sitio web oficial del Gobierno Argentino