Argentina To Strengthen Its Economy With Financial Aid From The IMF

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Argentina may soon get financial assistance from the International Monetary Fund.

Argentina has been hit by a deep financial crisis, especially with its currency hitting the bottom.

There are talks leading to IMF lending a helping hand to Argentina with an amount of $50 billion to pull up its economy.

Earlier when Mauricio Macri, the Argentine President asked help from IMF, he faced severe criticism from his countrymen. They blame the IMF for putting them in this critical spot when they refused to support in the year 2001.

But President Macri does not want the country to collapse again and has asked help from the Fund.

The Managing Director of IMF, Christine Lagarde has however assured Argentina of aid, so that it may strengthen its economy to benefit the country as a whole.

Argentina has agreed to bring some reforms within its country and make drastic changes to improve the economy of the country.

Reforms to bring the fiscal debt to nil by the year 2020 and steps to bring down inflation and cut public spending were just some of the basic changes that were to be implemented by the government. President Macri will soon take steps to bring these changes by which the loan can be repaid.

This deal will come for a vote by the IMF board and will be implemented once it passes the vote in the forthcoming days at Washington.

Once the board approves the deal, the country expects an initial fund to the extent of $15 billion. The fiscal deficit which was 2.2% of the GDP is expected to come down to 1.3%. This will be one of the first plans to be implemented feels Nicolas Dujovne, the treasury minister.

Argentina will pay back the amount in eight installments every quarter and the interest rate for this will range from 1.96% to 4.96%, depending on the loan usage.

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