IMF approves $7.5 billion disbursement to Argentina: economy minister's office

The International Monetary Fund's (IMF) executive board has approved a $7.5 billion disbursement for Argentina, a spokesperson for economy minister Sergio Massa told AFP Wednesday, as the South American country grapples with a prolonged economic crisis.

"The IMF Board of Directors approved the disbursement of $7.5 billion," the spokesperson for Massa, who is also running for president of Argentina, told AFP in a message on Wednesday.

The IMF did not immediately return a request for comment.

The agreement combines the fifth and sixth reviews of an existing 30-month IMF program, in a move that IMF staff said last month would help support Argentina's "very challenging" economic situation.

The country is grappling with a severe economic crisis that has seen the inflation rate soar above 100 percent, and poverty levels climb up to 40 percent.

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Massa traveled to Washington this week to meet with senior IMF and World Bank officials, as the two international financial institutions considered separate decisions relating to the country.

On Tuesday, the World Bank approved two new projects for Argentina worth around $650 million which are targeted at increasing access to financing for climate change mitigation and adaptation, and strengthening food programs.

The projects are aimed at helping Argentina "lay the foundations for more sustainable and resilient growth and improve the efficiency of public services and social protection," Marianne Fay, the World Bank's country director for Argentina, Paraguay and Uruguay, said in a statement announcing the decision.

Source: AFP