News Brief No. 01/71

News Brief: Köhler Says IMF Management to Recommend Accelerated Disbursement of US$1.2 Billion for Argentina

August 3, 2001

Horst Köhler, Managing Director of the International Monetary Fund (IMF), today announced that Management of the IMF intends to recommend to the Executive Board an accelerated disbursement to Argentina under its stand-by arrangement as soon as the current review of the program is complete.

"An IMF mission currently in Buenos Aires expects to conclude negotiations with the Argentine authorities on this review shortly. Upon conclusion of these talks, Management intends to recommend to the Executive Board a disbursement, accelerated into August, of approximately US$1.2 billion to Argentina. This would bring Argentina's total borrowings so far under the stand-by to approximately US$ 7.3 billion, out of a total of approximately US$ 13.4 billion, or close to 500 percent of quota, available under the program.

"Argentina has demonstrated a strong commitment to the convertibility regime and to decisive implementation of the package of measures designed to achieve a zero fiscal deficit that will help greatly to stabilize the macroeconomic situation and to strengthen confidence. In view of these resolute efforts, the IMF stands ready to support Argentina," Mr. Köhler said.