BUENOS AIRES:
Argentina sealed a $20 billion, 48-month Extended Fund Facility deal with the International Monetary Fund (IMF) on Friday, and in a major policy move ahead of the deal, dismantled key parts of its years-long currency controls and loosened its grip on the peso.
The IMF will disburse $12 billion by next Tuesday, while another $2 billion will become available by June.
Argentina will eliminate major parts of the so-called “cepo” capital controls that have restricted access to foreign currency, the central bank said in a statement.
Companies, from this year, will also be able to repatriate profits out of the country, a key demand from businesses that could unlock more investment. However, an IMF staff report on the $20 billion deal warned that “downside risks remain elevated.”
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