Argentina: IMF Raises Credit Line to $57 Billion

• Argentina: IMF Raises Credit Line to $57 Billion

Following a series of economic challenges in Argentina, the International Monetary Fund (IMF), has raised its bailout fund to the embattled nation. The bailout fund will support local currency and aid economic recovery.

Argentina’s credit line was raised from $50 billion announced in June to $57 billion over three years on Friday. The fund is expected to deliver part of the cash up front.

According to IMF, apart from the $15 billion already received, Argentina will have access to another $35 billion by the end of 2019.

However, in return, President Mauricio Macri of Argentina is expected to tighten policy by accelerating budget savings and freeze the supply of money to the economy to curb inflation.

Also, Argentina is expected to stop burning through its external reserves to defend its local currency, the peso.

The deal “should help investors sleep better at night,” said Daphne Wlasek, a macro strategist at XP Investments in New York. The additional money that’s on the way should eliminate Argentina’s “reliance on external financing” for next year, she said.