Argentina intends to use only part of IMF loan

© Flickr / Philip Coalindia. Buenos Aires. Archival photoArgentina intends to use only part of IMF loan© Flickr / Philip Choi

Argentine authorities plan to use only part of the $ 50 billion loan agreed with the International monetary Fund (IMF), stated in the Memorandum of the government of the country.

In early may, President Mauricio Macri said that the government appealed to the IMF loan. According to the President, this was due to the deterioration in external economic conditions and growth rates and oil prices. In the end, on June 7, an agreement was reached on the allocation of the stand-by credit in the amount of $ 50 billion.

«We expect payment of the first tranche ($15 billion) after approval of the program, half of which will be used for budget support. The remaining tranches will be considered as security», — stated in the joint communiqué of the Ministry of economy and the Central Bank of Argentina.

Also the authorities promise to reduce the budget deficit to 1.3% of GDP in 2019, freeze on two-year contracts by the government to reduce the cost of the state apparatus to 2.7% of GDP to ensure economic growth of 2% in 2019.