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Argentina IMF Loan Deal 2022

Argentina has taken a huge loan with the International Monetary Fund to prevent default. The economic crisis got worse and Argentina's leadership took refuge through the help of a loan from the IMF to revive their economy. It requires them to cut their spending and follow the strict guidelines of the international monitory Fund. It is possible through a decrease in spending of a country.

The loan of $45bn loans had been taken by the government of Mauricio Macri in 2018. They are due to pay back $19bn in 2022 and $20bn in 2023. The current situation of Argentina makes it impossible for them to return the loan. They have negotiated with IMF for more time to pay their debt till 2026. The pressure on the present government increased after their weak economic indicators.


The new deal helps Argentina's government to prevent the monetary and inflationary on their economy. It would have a burden on people and increase poverty within Argentina. The people are already under pressure from IMF after they are unable to return loans taken by the previous government of Argentina. It has increased inflation to a level that would risk their economy to default.

The macroeconomic indicators will be kept under the supervision of the government. It includes national spending, inflation, and unemployment. The increase in national spending put a burden on the economy that leads to price hikes and inflation. The prices of commodities burden the low-income population. Unemployment is another factor that further creates more issues for countries to cope with the economic crisis.

After loans from IMF pushed Argentina to end their subsidies, reduce spending, reduce monetary emission, and increase the interest rate on loans. If a country is unable to pay the debt they declare it as a defaulter. After default, the economy is controlled by the international monitory Fund to revive the economy to pay the debts. They are provided assistance from the IMF to restructure their economy.

The people of Argentina have protested against the loans from IMF. The loan has affected their economy adversely after the failure of their government to return the loan. they have gotten relaxation to pay the loan till 2026 instead of 2023. The loan has increased the inflation after cut down of subsidies. The restrictions of Covid-19 made the economic situation of Argentina worse for people.     
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