Argentina to use IMF money to pay back part of a currency swap with China, sources say

gowan , 10 months ago

So paying off one crooked banker with another less than ideal lender? Will Argentina ever get its act together or will that forever be out of reach as the wealthy really seem to not care here.

autotldr Bot , 10 months ago

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Click here to see the summaryLONDON, Aug 23 (Reuters) - Argentina plans to tap a $7.5 billion disbursement from the International Monetary Fund to repay China part of the money it borrowed through a currency swap line, two sources with direct knowledge of the matter said on Wednesday. Latin America’s third-largest economy recently used $2.8 billion equivalent of yuan to cover just over half of two repayments from a 2018 IMF loan, in order to avoid a default to the multilateral lender. The plans shed some light on the crucial bridge loan that China extended to Buenos Aires via a currency line established with Argentina more than a decade ago, whose details have remained largely secret. Accessing yuan to make IMF payments offered a lifeline to Argentina, which is battling an acute scarcity of dollars and is struggling to keep alive its $44 billion program with the Fund. The IMF’s executive board on Wednesday approved two combined reviews of a 2022 loan, which is basically a refinancing line of the failed 2018 program. Argentina is set to elect a new president in October amid triple-digit inflation and mounting capital controls that have crippled the economy. — Saved 64% of original text.