LONODN (Bloomberg) - The International Monetary Fund will give Argentina as much as $10.8 billion in loans for the rest of the year as part of a refinancing agreement that will help the cash-strapped nation to navigate a turbulent period ahead of presidential elections.
The first payment of $7.5 billion will be made in August, after approval by the IMF’s executive board in the second half of the month, the Fund said Friday in a statement, confirming its staff had reached an agreement with the government of outgoing President Alberto Fernandez.
An IMF announcement on Argentina’s upcoming staff-level agreement, will mention an August disbursement figure of $7.3 billion, but not the one in November. That’s because the November loan will be tied to a separate program review being moved up from December to November, the people said.
The IMF executive board plans to vote on the staff-level agreement for the August disbursement by mid to late August after its summer recess, the people said.
Argentina’s sovereign bonds due 2030 have climbed in recent weeks on expectations the nation would rework its agreement with the Fund, and on bets voters will install a more-market friendly administration in October’s elections.