Argentina seeks IMF help to stabilise economy

10 May 18

Argentina is seeking emergency help from the International Monetary Fund in a bid to strengthen and stabilise its economy.

In a statement on 8 May, Argentine president Mauricio Macri said cooperation with the IMF would help avert the crises of that have plagued the Latin American country in the past.

A deal with the fund would “allow us to strengthen our programme of growth and development, giving us greater support to face this new global scenario and avoid crises like the ones we have had in our history”, he said.

Interest rates in Argentina recently hit 40% and the country’s currency – the peso – has lost a quarter of its value.

It has been reported that the Argentine government is seeking $30bn from the IMF.

Last year, inflation hit 25%, the second highest in Latin America after Venezuela.

IMF managing director Christine Lagarde said: “Argentina is a valued member of the International Monetary Fund.

“I very much welcome President Macri’s statement today and look forward to our continuing partnership with Argentina. Discussions have been initiated on how we can work together to strengthen the Argentine economy and these will be pursued in short order.”

Argentina has a somewhat troubled relationship with the IMF and 12 years ago cuts ties with the international lender some years after defaulting on its sovereign debt.

Macri took office in 2015 on a platform of pro-market policies.

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