Argentina secured a $50 billion stand-by arrangement from the International Monetary Fund to help restore investor confidence as the government takes aim at double-digit inflation and a widening budget deficit.
The rescue program’s size, which would run for 36 months, is the largest ever in IMF history though it will depend on how much the government taps. It comes amid an emerging market sell off that has shaken developing economies around the world including Brazil, Turkey, Indonesia and Mexico and has forced central banks to hike interest rates.
Of the economies that have been hit hardest, Argentina tops the list. It has indicated it plans to draw on the first tranche of the program, after which it will treat the loan as precautionary, the government said in a statement.
“The amount we received is 11 times Argentina’s quota, which reflects the international community´s support of Argentina,” Treasury Minister Nicolas Dujovne said in Buenos Aires. “It’s very good news that the integration with the world allows us to receive this support.”
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