IMF to provide $50bn bailout to Argentina

Argentina is poised to get the biggest IMF bailout in history. The finance institution reached a staff-level agreement to offer the South American nation, which requested aid last month when its currency hit an all-time low, a $50bn loan as part of a three-year standby programme.

Argentina is poised to get the biggest IMF bailout in history. The finance institution reached a staff-level agreement to offer the South American nation, which requested aid last month when its currency hit an all-time low, a $50bn loan as part of a three-year standby programme. The credit line seeks to rein in soaring twin deficits in the country and prop up the Argentine peso.
Investors have been pulling cash out of the country, and the Argentine peso has fallen more than 36% versus the US dollar this year, even amid aggressive contractionary policies. The Central Bank of Argentina raised rates three times last month to 40%. Meanwhile, the government recently announced hefty spending cuts and increases in utility prices. After President Mauricio Macri announced negotiations, nationwide protests broke out. 
As part of the deal, the Argentine government is asked to ramp up spending cuts and end central-bank financing of the federal deficit. 
Argentina has had a complicated relationship with the IMF, which has been blamed for worsening the country's economic crisis in 2001. 

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