Argentina has struck an agreement with the Inter-American Development Bank (IADB) where the latter will extend financing to the nation for almost $5bn in 2022 and 2023. The South American nation has been struggling with financial instability with inflation surging over 90%, and with consumption and economic activity going south. The government source said that Argentina urgently needs foreign currency to avoid a depreciation of the peso amid extremely high inflation. In 2022, Argentina will get $3bn and in 2023, another $1.8bn will be given by the IADB. Of the $3bn that it will get this year, $1.2bn would be available in two steps – $500mn will be disbursed by September 30 and $700mn before December 30. The nation’s forex reserves fell to less than $30bn, its lowest levels since late-2016.
Argentina’s dollar bonds were trading slightly higher – its 1.5% 2035s were up 0.47 points to 22.72, yielding 15.62%
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