Argentina Taps U.S. Treasury for $808 Million in IMF Payment, Reports Say
BUENOS AIRES, Feb 1 (Reuters) – Argentina has secured $808 million in Special Drawing Rights (SDRs) from the U.S. Treasury to fulfill a scheduled interest payment to the International Monetary Fund (IMF), according to a report by local newspaper La Nacion on Sunday.
The transaction underscores the persistent liquidity constraints facing Latin America's third-largest economy. It follows a broader pattern of U.S. financial support extended last year to help Argentina stabilize its currency and avert a deeper crisis.
SDRs, an international reserve asset created by the IMF, derive their value from a basket of currencies including the U.S. dollar, euro, Chinese yuan, Japanese yen, and British pound. Their use in settling IMF obligations is a common, though closely watched, mechanism for member nations navigating debt pressures.
This latest move occurs under the administration of President Javier Milei, whose libertarian economic policies have aligned Argentina more closely with the United States. The financial cooperation marks a continuation of support from Washington, reinforcing Argentina's role as a key regional partner for the U.S. government.
Argentina's economy ministry had not issued an official comment at the time of reporting.
Analysis & Reaction
The deal is seen by analysts as a necessary stopgap but not a solution to Argentina's underlying fiscal challenges, which include soaring inflation and significant debt burdens. "This is a liquidity bridge, not a fiscal reform," said Dr. Elena Vargas, a senior economist at the Buenos Aires Policy Institute. "It prevents an immediate default but does little to alter the structural issues that necessitate such maneuvers."
Voices from the Street
Carlos Mendez, 52, Shopkeeper in Buenos Aires: "Every time I hear about another loan or payment to the IMF, I just think of more austerity coming. My business is already struggling. When does this cycle end?"
Professor Ana Silva, Economic History, University of Buenos Aires: "This transaction is a technical step within established international frameworks. It reflects the ongoing re-engagement between Argentina and multilateral creditors, a process that is complex but necessary for long-term stability."
Miguel Rios, 38, Political Activist: "It's outrageous! Milei's government is selling our sovereignty piece by piece to pay a fund that imposes brutal conditions on our people. This isn't an alliance; it's dependency dressed up as diplomacy."
Linda Chen, Emerging Markets Analyst, Global Finance Corp: "The market will view this as a positive short-term signal of commitment to meeting obligations. However, investor focus remains squarely on the government's ability to implement sustained spending cuts and growth-oriented reforms."
(Reporting by Nicolas Misculin; Editing by Jacqueline Wong)