The Argentine government said it will use a loan from Qatar amounting to $775-million to make a payment to the International Monetary Fund as it awaits approval of a disbursement from the IMF for $7.5-billion. The credit operation would allow Qatar to lend Argentina Special Drawing Rights (SDRs, or money that countries reserve in the IMF) for the equivalent of $775-million, said a source at the economy ministry.
“It is the first time in history that Qatar has carried out a credit operation with Argentina,” said the source, on condition of anonymity, adding that this will allow the South American country to pay the maturity “without using reserves.”
The credit was negotiated by Argentine Economy Minister Sergio Massa with the Qatari economic team “in absolute secrecy.”
Argentina is seeking to avoid a new drain of dollars from its depressed international reserves. The Qatari loan will be applied to the payment to the IMF on interest that is due.
It will then be paid with the disbursement that Argentina expects to receive from the multilateral organization once its executive board ratifies, in mid-August, the approval of the fifth and sixth revisions of the agreement with the country.
The loan with the IMF was taken by Argentina under the government of Mauricio Macri as an agreement for $57-billion.
Last Monday, Argentina paid the IMF a maturity of $2.7-billion with yuan from a currency swap with China and a bridge loan of $1–billion from the Andean Development Corporation (CAF).
Source: eNCA
In other news – Drake Shades Kanye West With Dig At Fan’s Concert Attire
Drake has taken aim at frenemy Kanye West during a recent tour stop, once again highlighting their strained relationship. In a new video that surfaced on social media, the rapper pointed out a fan in the crowd who he began to compliment.
But, it quickly went awry when Drizzy took the opportunity to throw shade at the controversial rapper and presidential candidate hopeful. Read more
