Copy of 2023-07-26T125353Z_1628780068_RC2DK1ACS34K_RTRMADP_3_ARGENTINA-IMF-1690555264438
People gather near the presidential palace during a protest as inflation is hitting 114%, hurting salaries and spending power, with many blaming tighter policies they say are due to the deal with the IMF, in Buenos Aires. Image Credit: REUTERS

Buenos Aires: The International Monetary Fund will give Argentina as much as $10.8 billion in loans for the rest of the year as part of reviews to refinance a record $44 billion program with the cash-strapped nation, according to people familiar with the matter.

The payments will be made in August and November, with the majority of the funding coming after the August 13 primary election, the people said. The exact amount of disbursements is still being debated, with a range set between $9.4 billion and $10.8 billion, they added, asking not to be identified discussing private information.

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An IMF spokesperson declined to comment.

An IMF announcement on Argentina’s upcoming staff-level agreement, which is expected as early as today, will mention an August disbursement figure of $7.3 billion, but not the one in November. That’s because the November loan will be tied to a separate program review being moved up from December to November, the people said.

The IMF executive board plans to vote on the staff-level agreement for the August disbursement by mid to late August after its summer recess, the people said.

Argentina’s sovereign bonds due 2030 have climbed in recent weeks on expectations the nation would rework its agreement with the Fund, and on bets voters will install a more-market friendly administration in October’s elections.