IMF says ‘important progress’ in talks on new Argentina deal

BUENOS AIRES (Reuters) – The International Monetary Fund has held productive meetings with Argentina aimed at revamping the country’s standby loan agreement, the IMF said on Monday, while the government prepares to send its 2019 budget bill to Congress.

The measure is expected to include new spending cuts aimed at erasing Argentina’s primary fiscal deficit next year. In June the government signed a $50 billion standby deal that included a fiscal shortfall of 1.3 percent of gross domestic product.

But the IMF backing was not enough to halt a run on the peso, which has erased more than one-half of the local currency’s value against the U.S. dollar so far this year.

“Important progress is being made toward strengthening Argentina’s economic policy plan, supported by a stand-by arrangement with the IMF. We are working hard to conclude these staff-level talks in short order and present a proposal to the IMF executive board,” the IMF said in a statement.

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