Argentine Peso Plunges On Reports Of Increased IMF Credit Line

It appears $50 billion just isn’t what it used to be…

Argentina’s La Nacion newspaper reports that the government is seeking to increase its credit line with the IMF

Th government is negotiating with The IMF for an expansion of the Stand-by Agreement: it will add $3 to $5 billion additional funds to the $50 billion figure agreed in June, according to a source close to FinMin Dujovne. This increase is considered sufficient to cover debt maturities through 2020.

This has been confirmed by official sources to La Nacion.

Having rallied the last few days, carried on a falling USDollar-driven rebound in EM FX broadly, the peso is plunging in the early market as this increased credit line throws further doubt on Argentina’s potential for a turnaround…

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