Argentina provides $ 42 billion from the International Monetary Fund, while it raises the currency control elements Business and Economics News

Three major financial institutions invest in the economic recovery of Argentina as they try to cancel the activation.

Argentina received $ 42 billion in medium -term financing from the International Monetary Fund (IMF) and other financial institutions, as it announced that it abandons most of the narrow currency controls.

The Executive Council of the International Monetary Fund agreed late on Friday on a $ 20 billion rescue package to be removed over the next four years, with an immediate exchange of 12 billion dollars and another $ 2 billion available after a review in June.

The World Bank has also announced a $ 12 billion support package for Argentina, and the Development Bank between America (IDB) said it would save up to 10 billion dollars for financing for public and private sectors. Both are three years plans.

president Javier Miley It was announced on Friday that – starting on Monday – it raises most of the capital and strict currency controls in Argentina as part of the agreements that obtained huge financing deals.

He said on national television while he was surrounded by his ministers: “Today we penetrate the cycle of disappointment and disappointment, and we started moving forward for the first time.” “We have canceled the controls of exchange rates on the Argentine economy forever.”

The capital controls, known in Argentina as “EL CEPO” or “The Clamp”, were imposed by a previous administration in 2019 with the aim of preventing further financial fall and capital journey that the country deals with for years.

The controls were installed on the ability of individuals to buy US dollars, which led to a black market that citizens use widely. They also restricted the access of companies to dollars, which inhibits the foreign investment that Millie needs.

The Argentine Central Bank now aims to allow the bizo to trade within the so -called currency squad instead of linking the besieged currency to dollars.

The range ranges between 1000 to 1400 peso per green and will be expanded by 1 percent every month, according to the Central Bank.

In announcing it The latest support packageThe International Monetary Fund said that the program “is expected to stimulate more official funding from multilateral sources” and “seeks to facilitate a timely return to international capital markets.”

“The program supports a path towards macroeconomic stability, the promotion of external sustainability, and the basis for stronger and more flexible growth,” adding that its main columns include “maintaining a strong financial anchor and moving towards a more powerful and fisherous system.”

The organization praised the new commitment to the Argentine authorities with the aim of zero budget, which presented the first financial surplus in nearly two decades.

But to achieve the surplus, Millie launched tens of thousands of state workers, with Population repairs heavily, Including by raising poverty levels.