The Government is seeking a loan from two funds or money from the IMF, in addition to the “REPO” with banks

The Government is evaluating Whether to negotiate a loan with two investment funds or seek additional financing from the International Monetary Fund to pave the way for the lifting of currency and capital controls in the coming months, he assured the agency Bloomberg a senior official.

The Ministry of Economy would seek private financing or new financing from the IMF, but not both, and wants to have it for February or March, according to the official, who did not reveal the funds being negotiated, nor the amount of a possible loan.

The Government’s decision on IMF funds or the lending of investment funds is parallel to the negotiations that policy makers are maintaining with banks for a repurchase agreement, or REPO, what would it mean at least US$2.7 billion over three years.

The official added that the REPO is now being considered to make payments due to Argentine bondholders in July instead of January, since the monetary authority already has the money to make around US$4.7 billion of principal and interest payments due this month. The diary The Nation published that this loan, guaranteed with bonds, would already be closed and would be announced in the coming days.

The IMF confirmed last month that Argentina is seeking a new deal to succeed the $44 billion deal. The Minister of Economy, Luis Caputo, also said that he wants to close an agreement with the IMF in the first quarter this year and added that he hoped it would include new funding, without providing a figure.

Argentina is trying to reach its third agreement with the IMF since 2018, but it remains unclear whether the Washington-based entity would provide additional financing beyond the $44 billion.

A year ago, officials suggested that Up to $15 billion in additional IMF money would be needed to lift controlsbut they did not refer to the figure for several months.

Although the ultimate objective of the financing would be speed up the road towards the removal of the trapthe funds would technically be used for the Treasury to pay billions in debts it owes to the Central Bank.

That would help clean up the balance sheet of the monetary authority and to restore its so-called net reserves, the difference between its cash on hand and outstanding liabilities. Currently, the Central Bank has negative net reserves, which prevents officials from lifting controls because it would leave the peso exposed to a currency sell-off.