The Strategist

Argentina receives $3.98B in borrowing rights from IMF

06/29/2022 - 11:41

IMF special drawing rights (SDRs) worth $3.98 billion were provided to Argentina on Tuesday, according to a source at the country's central bank.

According to the source, SDRs worth $3,980 million have been received.

The next report of the Argentine Central Bank's foreign exchange reserves will include the 3,000,000,000 SDRs (or $3,980,000,000,000) that Argentina received. Based on the South American nation's 0.67 percent IMF quota, special drawing powers were granted to it.

Argentina received the borrowing rights four days after the IMF board approved the first amendment of the $44 billion loan arrangement between 2018 and 2019 during President Mauricio Macri's administration (2015-2019). From 2026 until 2034, payments on this debt from Argentina are expected.

The government agreed to reduce the money issue, energy subsidies, and the budget deficit to 2.5 percent of GDP in 2022, 1.9 percent in 2023, and 0.9 percent in 2024 as part of the agreement with the IMF.