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IMF says talks over Argentina financial aid 'well advanced'

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IMF says talks over Argentina financial aid 'well advanced'

Negotiations between the International Monetary Fund and Argentina over financial support for the country's economic plan are "well advanced," according to a statement from IMF.

Argentine President Mauricio Macri said in May that the country was seeking a credit line from the IMF to avoid a financial crisis as the peso sank and the Banco Central de la República Argentina implemented a series of interest rate hikes.

"Talks are well advanced," the IMF's director of the Western Hemisphere department, Alejandro Werner, said. "As we have said all along, this will be a plan driven by the Argentine government's priorities, with a particular focus on protecting the most vulnerable, and strengthening the local economy in light of the recent financial market turbulence."

On May 18, IMF Managing Director Christine Lagarde told the fund's board that Argentina was requesting an exceptional access stand-by arrangement.

Given Argentina's $4.5 billion IMF quota, the minimum value of a financing deal would be $19.7 billion, or at least $6.75 billion per year, Reuters noted.

A stand-by arrangement usually covers a period of 12 months to 24 months, but no more than 36 months, according to the IMF.