Argentina is engaged in initial talks with the International Monetary Fund regarding a possible twenty billion dollar loan designed to bolster the country’s foreign currency reserves.

Argentina’s lower house of Congress has approved a resolution endorsing negotiations with the IMF to improve central bank reserves and relax some capital controls.

While the resolution does not mention a specific amount, it proposes a repayment plan spanning ten years with a grace period of four and a half years.

The funds acquired would be allocated to meet treasury debt obligations.

Currently, Argentina is grappling with a continued shortage of foreign reserves due to years of fiscal imbalances, currency crises, and multiple defaults, making it the IMF’s largest borrower.

The country is still in the process of repaying a forty-four billion dollar loan that was granted in twenty twenty-two.

On March sixth, an IMF representative indicated that the fund was 'making progress toward a new program' and was 'constructively engaging with Argentine officials.'

Loan requests that surpass a country’s usual borrowing limits necessitate special approval from the IMF’s Executive Board.

In such instances, board members must be consulted prior to any agreement being finalized or publicly disclosed.