Argentina pays off $2.6 billion IMF debt using Chinese currency swap line
2023.11.01 03:43
The Argentine government, led by Sergio Massa, managed to avert a financial crisis by settling significant maturities worth $2.6 billion to the International Monetary Fund (IMF), its primary lender. The payment was made possible through a Chinese currency swap line and special drawing rights from a disbursement in August, leaving Argentina with minimal liquid cash reserves.
Following this payment, the central bank’s reserves plunged to a low unseen since 2006, standing at $21.9 billion. The exact sum utilized from the $18 billion Chinese swap line or the additionally approved $6.5 billion remains undisclosed.
This financial move comes at a crucial time ahead of the definitive November 19 runoff vote between Massa and Javier Milei. However, it leaves the future of Argentina’s relationship with the IMF uncertain due to Massa’s inability to meet key targets.
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