IMF extends Argentina's repayment of SRF by one year

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On November 20, the IMF's Executive Board approved a request from Argentina to extend by one year the repayment of SDR 105.9 million (about $141 million) under the Supplemental Reserve Facility (SRF).

On January 12, 2001 (see Press Release No. 01/3 on the IMF's website), the IMF approved financing for Argentina under the SRF as part of a Stand-By Arrangement to ease a short-term financing constraint.Normally, an SRF is expected to be repaid in two installments-one year and one and a half years after it is disbursed. For Argentina, the second installment would have come due on November 22, 2002. But the borrowing country may request an extension of up to one year if repayment would cause undue hardship and if it is working to strengthen its balance of payments.At the end of the extension, the country is obligated to repay the loan.

In commenting on the Executive Board decision, Acting Chair and Deputy Managing Director Shigemitsu Sugisaki said that, in light of Argentina's difficult economic and social circumstances, Executive...