Qatar to loan $775 million to Argentina to pay the IMF

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Loan of almost R$ 3.8 billion, at the current exchange rate, comes to help the Latin country, which is going through a serious economic crisis. Dollar banknotes bearfotos/Freepik The government of Argentina closed an agreement this Friday (4th) with Qatar for a loan of US$ 775 million, or around R$ 3.8 billion at the current exchange rate. The money will be used to pay the Latin American country’s debts with the International Monetary Fund (IMF), which are due today. Argentina is facing a severe economic crisis with skyrocketing inflation and falling central bank reserves, in addition to having to pay the IMF. The country’s economy minister, Sergio Massa, said on Monday (31) that Argentina would not use “a single dollar from its own reserves” to pay the IMF. The Qatari loan will bear the IMF variable interest rate applicable to SDRs (IMF currency), which is currently 4.033% per annum, a presidential decree said. The funds “will finance Argentina’s due date with the IMF (for charges and surcharges) on August 4, 2023,” he said. Massa also confirmed on Monday that the payment will be made with a $1 billion bridge loan from CAF regional development bank and $1.7 billion of the second tranche of a swap with China, a move recently made to complete part of a June payment to the IMF.

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