Development bank gives Argentina bridge loan to pay IMF debt

BUENOS AIRES - The Development Bank of Latin America and the Caribbean (CAF) has approved a $960 million loan for Argentina aimed at helping the government meet debt obligations with the International Monetary Fund (IMF), the bank said in a statement on Friday.

Reuters reported on Thursday that Argentina was set to receive CAF financing to make a $913 million payment due to the IMF next week.

The South American country is the fund's largest debtor with its $44 billion program, and the new government of libertarian President Javier Milei is now tasked with getting the program back on track and improving the ailing economy.

Argentina is battling triple-digit annual inflation, an economic recession and a growing poverty rate.

Milei's office described the loan as its "first great achievement" in all-capital letters in a post on social media network X. "Getting Argentina's finances in order allowed the country to access CAF financing and avoid default with the IMF."

The country's economy ministry rolled out a slew of "shock" reforms earlier this week. The plan included a devaluation of the peso currency by more than 50%, which took effect on Wednesday, as well as wide-ranging plans to cut state spending.

Argentina has previously had to use a swapline with China's central bank as well as a loan from Qatar to make recent payments to the international lender on time. REUTERS