Buenos Aires—Argentina on Friday received $15 billion, the first tranche of a $50 billion loan from the International Monetary Fund, to help stabilize its fragile economy, the South American nation’s central bank said.
Following a currency crisis in April and May, the IMF announced the $50 billion standby loan in early June after Latin America’s third largest economy sought help to bolster market confidence.
The peso plunged to a record low this month, and since the start of the year the currency has dropped more than 30 percent against the dollar.
On Wednesday the Washington-based IMF approved the $50 billion aid package. It said the first $15 billion will contribute to budget support while the $35 billion balance will be “precautionary.”
The fund said that its assistance would back efforts by Buenos Aires to put public debts on a sustainable path, reduce the need for financing and tackle inflation while strengthening the central bank’s independence, while maintaining social spending.
Argentina has a bitter history with the global crisis lender, which many Argentines view as having imposed tough conditions that worsened economic pain 17 years ago.