After a few days of uncertainty, Argentina made its scheduled $3.1 billion repayment of an International Monetary Fund (IMF) loan on March 9. (Argentina defaulted temporarily on a payment to the IMF last September.) The IMF will now re-lend the money as part of its original arrangement with Argentina. The country has met most of the IMF’s targets for growth, inflation, and fiscal discipline, but the IMF had balked at rolling over the loan because Argentina had failed to undertake “good faith” negotiations with private creditors on debts stemming from its December 2001 default. That issue now seems to be resolved.
Suggested citation: "Argentina," Federal Reserve Bank of Cleveland, Economic Trends, no. 04-04, pp. 09, 04.01.2004.