Staff from an International Monetary Fund (IMF) mission are in Argentina discussing a possible new debt deal, an economy ministry source told Reuters on Wednesday, confirming recent comments from the IMF chief about promising conditions for the talks.
Argentina's government is seeking a new loan this year, on top of the $44 billion the previous administration renegotiated in 2022, with hopes that extra funds could further restore market confidence, according to the source. Argentina is the IMF's largest debtor country.
The ministry source, who is not authorized to speak to the media, spoke on the condition of anonymity.
Libertarian President Javier Milei's push to slash public spending, rebuild depleted foreign reserves and lower triple-digit annual inflation has boosted Argentina's prospects for a fresh injection of funding, according to investors.
On Sunday, IMF head Kristalina Georgieva signaled that with the "deficit wiped out, inflation down, and growth rebounding," there were strong prospects for further talks. The international lender's managing director made the comments following a meeting with Milei's economic team in Washington.
A new debt deal could unblock new funds to bolster the central bank's hard currency reserves.
Economy Minister Luis Caputo interrupted a trip to the World Economic Forum in Davos, Switzerland, to return to the South American country to meet with IMF officials, he said on social media.
"There will be three days of hard work dealing with the (IMF) mission, the membership bid announced yesterday, and measures that we're finishing designing from the secretariat of commerce," Caputo wrote in a post on X.
