IMF board to review Argentina's $44 billion aid program next month

Investing.com -- The International Monetary Fund (IMF) executive board is expected to review Argentina's existing $44 billion aid program in the coming month, according to anonymous sources. This review is a vital process as Argentina's President Javier Milei is in talks for a new loan.

The board's meeting is tentatively scheduled for early January, where a staff report on the agreement that Argentina made with the IMF in 2022 will be evaluated. The sources chose to remain anonymous since the details are not yet public.

The review, known as an ex-post evaluation, will assess the design and implementation of the aid program. This type of evaluation is a standard procedure for countries that have received so-called exceptional access loans, which are loans that exceed the IMF's normal lending limits.

In an email response to inquiries, the IMF stated that a staff team is finalizing the report. The IMF described this as a "standard and routine procedure for all IMF programs involving lending above normal borrowing levels." However, the IMF did not comment on when the board's review would take place.

Large loans like the one Argentina received have recently faced criticism from the IMF's internal watchdog. The watchdog pointed out deficiencies in the design and implementation of such loans, including a lack of consistency, clarity of expectations, and benchmarks.

For Argentina, which is the IMF's largest debtor, this review is a necessary step before the Milei administration can finalize a new deal. Earlier this month, an IMF spokesperson announced that discussions with Argentina were already in progress. Officials from Milei's government have suggested that the new deal may include additional funds.

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Source: Investing.com