Argentina makes IMF payment as deal talks grind on

(Reuters) – The International Monetary Fund said on Friday that Argentina is current in its payment obligations, and the government said it made a $2.7 billion payment to the fund using its existing stock of the IMF’s reserve assets, and Chinese currency.

Argentina’s economy ministry said through a spokesman the June payments were made “without using dollars” but the country’s holdings of the fund’s special-drawing rights (SDRs) and . The operation, which depleted Argentina’s $1.6 billion in SDRs, underscores how desperate the country’s dollar position has become.

The IMF did not respond to requests for comment on the payment method. Reuters reported Thursday the amount and sources of the payment, citing people with direct knowledge.

“IMF staff and the Argentine authorities will continue to advance their work in the coming days, with the aim of reaching agreement on the fifth review of the Fund-supported program,” the fund said separately on Friday, after a “standard informal Executive Board briefing on Argentina” was held Thursday.

Both parties are locked in talks to speed up disbursements from their $44 billion program and ease economic targets, as a major drought continues to hammer vital grains exports.

Argentina’s economy ministry said a team will travel to Washington early next week to continue negotiations.

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