IMF chief says she expects decisions soon on Argentina aid package

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WASHINGTON (Reuters) -The International Monetary Fund is working closely with the United States, the World Bank, and the Inter-American Development Bank in hammering out an aid package for Argentina, IMF Managing Director Kristalina Georgieva told Reuters on Wednesday.

Georgieva said she expected decisions on the issue shortly.

One option, she said, was for the United States to loan its Special Drawing Rights, or IMF reserve assets, to Argentina, much as Qatar did in 2023.

U.S. Treasury Secretary Scott Bessent last week stressed that the United States was not putting money into Argentina but only providing a credit swap line. 

A U.S. pledge to help Argentina has rankled some Republicans as the South American nation sold billions of dollars’ worth of soy to China.

Georgieva said the IMF had been engaged with Argentina for a “very, very long time,” but the current government led by President Javier Milei had taken decisive action to enact reforms, drive down inflation, and create a regulatory regime more friendly to the private sector.

“This is not the first program, but if I put my optimistic hat on, I can maybe say that it could be the last program of the IMF with Argentina,” Georgieva said.

She said the biggest priority was for Argentina to build reserves. “When the country can face debt service obligations, can face pressures domestically, with a strong reserves position, then of course, they can continue implementing their programs and keep the people of Argentina on board,” she said.

“My dream is for Argentina to be entirely on its own feet,” she said. “They have all the ingredients for prosperity. What they were lacking was on the policy front.” 

(Reporting by Andrea ShalalEditing by Rod Nickel)