IMF agrees to $50B deal to help Argentina’s economy

Argentina’s President Mauricio Macri speaks during a press conference at the Presidential residence in Olivos, Buenos Aires on May 16, 2018. Macri said the government and political leaders should agree to reduce fiscal deficit after considering that the country overcame what he called a “currency turbulence” crisis. On Thursday, June 7, 2018, Argentina and the International Monetary Fund (IMF) have agreed on a $50 billion stand-by deal aimed at strengthening the South American country’s economy. / AFP PHOTO / JUAN MABROMATA

WASHINGTON — Argentina and the International Monetary Fund (IMF) have agreed on a $50 billion stand-by deal aimed at strengthening the South American country’s economy.

The IMF announced on Thursday that the staff-level agreement will be subject to approval by its executive board, which will consider Argentina’s economic plan in the coming days.

President Mauricio Macri announced in May that Argentina would seek a financing deal with the IMF, following a sharp devaluation of it currency and amid a tough global outlook.

The deal brought back bad memories for Argentines who blame the IMF’s policies for the country’s worst economic crisis in 2001. But Macri said Thursday’s deal was needed to avoid another economic implosion.

The IMF deal “is very important starting point,” Macri told reporters several hours before the loan was announced.  /kga