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IMF board expected to meet soon on Argentina deal

Talks between Argentina and International Monetary Fund officials over a proposed $30 billion credit line for Latin America's third-largest economy are so advanced that a final proposal should be forthcoming.

The international lender's executive board is expected to meet soon, Gerry Rice, IMF director of communications, said in a June 7 press conference.

Rice did not provide a timetable, and he cautioned that "the deal is not done until it's announced."

At the beginning of May, Argentine President Mauricio Macri resorted to the IMF when the peso fell precipitously as rising oil prices and a widening current account deficit roiled the country's finances.

The Argentine deal is being watched closely, with other emerging markets beginning to struggle as global central banks embark on course of raising interest rates.

In light of those concerns, Rice was asked whether the Argentine situation might have spillover effects on other emerging economies. "It's not something that we would be forecasting and, in fact, our hope would be the Argentine economy is even stronger in the context of this IMF agreement," he said.

Although IMF Managing Director Christine Lagarde and Macri are expected to attend the G7 summit in Quebec on June 8-9, Rice said there are no official plans for them to meet.

The IMF is also watching developments in Ukraine after the country's parliament voted to dismiss Finance Minister Oleksandr Danylyuk at the behest of Prime Minister Volodymyr Groysman. Danylyuk said he was being dismissed because he would not support "political corruption."

At the same time, the Ukrainian government established an anti-corruption court, which was an IMF condition for obtaining more aid.

The finance ministry "should retain its crucial role," Rice said, while also noting that the organization would not comment on "internal personnel issues."