The IMF increases its financing agreement for Argentina to 56.3 billion dollars

The International Monetary Fund has agreed to raise to about $ 56.3 billion the amount of a conditional financing agreement for Argentina.

In June, the government of Argentine President Mauricio Macri signed a $ 50 billion deal with the IMF in hopes of ending a massive sale in local currency (peso).

But the peso continued to fall, forcing Macri to renegotiate the deal. Following an IMF board meeting on Friday, the IMF issued a brief statement not specifying the terms of the amended funding agreement.

Argentina said the new agreement would force the government to significantly reduce spending and raise taxes in order to reduce the initial budget deficit, which is expected to reach 2.7% of GDP in 2018, to reach zero. next year.

The peso has stabilized after the announcement of the new agreement.