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Argentina agrees $775m loan with Qatar to repay IMF

Argentina Qatar loan IMF Reuters/Agustin Marcarian
Argentina, which won the Qatar World Cup 2022, is extended a loan by the Gulf state
  • Argentina requires Qatar loan amid ongoing economic crisis
  • Borrowing is at IMF’s variable interest rate, currently 4.033%

Argentina agreed a $775 million loan with Qatar on Friday, which will be used to make an immediate International Monetary Fund repayment.

The country’s government is grappling with a severe economic crisis with sky-high inflation and falling central bank reserves while facing IMF repayments.

Its economy minister Sergio Massa said on Monday Argentina would not use “a single dollar of its own reserves” to make the IMF repayment.

The Qatar loan will have the IMF’s variable interest rate, currently 4.033 percent per annum, a presidential decree said.

The money will “fund the payment of Argentina’s maturity with the IMF (for charges and surcharges) on August 4, 2023,” it said.

Massa also confirmed how the repayment will be made. A $1 billion bridge loan from regional development bank CAF and $1.7 billion from the second tranche of a swap with China will be used.

The latter was recently made to complete part of a June payment to the IMF.