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IMF to lend $5.4 billion to Argentina under standby loan agreement

BUENOS AIRES, July 13: The International Monetary Fund (IMF) board has said on Friday it would grant some $5.4 billion in real money to Argentina in the wake of affirming the fourth audit of a standby credit agreement for the emergency stricken South American country.

The recent development was a part of a $57 billion IMF financing deal affirmed a year ago that included disliked spending cuts that have pounded family units and businesses officially battling with retreat and high inflation, according to Reuters news reports.

In an official statement, the IMF said, “The Argentine authorities continue to show a strong commitment to their economic policy program, meeting all the applicable targets under the Fund-supported program.”

The latest cash flow could help beset President Mauricio Macri as he looks to quiet markets and lift speculator certainty in front of the first round of presidential polls in October, in which Macri is looking for a subsequent term.

The legislature says the standpoint for Latin America’s No. 3 economy is improving. Prior on Friday, authorities said Argentina had posted an excess of $710.9 million in the primary portion of 2019, outperforming a key benchmark set by the IMF.

In the statement, the board said, “While it has taken time, these policy efforts are starting to bear fruit,” adding, “Financial markets have stabilized, the fiscal and external positions are improving, and the economy is beginning a gradual recovery from last year´s recession. The Fund is strongly supportive of these important policy efforts.”

Macri-led government has said it anticipates that expansion should end this year under 40.3%. The rate over a year through May timed at 57%.

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