Press Release: IMF Extends Argentina's SRF Repayment by One Year
IMF News, January 16, 2002
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Bibliographic details
- Published: January 16, 2002
Executive Board decision
- The Executive Board of the International Monetary Fund (IMF) approved Argentina's request to extend by one year the repayment of SDR 741 million (about US$933 million).
- Original repayment date under the Supplemental Reserve Facility (SRF): January 17, 2002.
- Extended repayment date (end of extension): January 17, 2003.
- Press Release designation in source: Press Release No. Press Release No.<a name="P16_74"></a>02/2.
SRF background and mechanics
- The IMF approved financing for Argentina under the SRF as part of a stand-by credit on January 12, 2001 (see Press Release No. 01/3).
- Repayment of an SRF is normally expected in two installments made at one year and at 1½ years after the SRF disbursement; in Argentina's case the first installment would have been on January 17, 2002.
- A borrower may request an extension of up to one year of the expected repayment period under the SRF.
- An extension can be granted if repayment would cause undue hardship and provided the borrower is taking actions to strengthen its balance of payments.1
- At the end of the extension, the country is obligated to repay the SRF on the specified extended date.
Conditions and criteria for extension
- Grounds for granting an extension:
- Repayment would cause undue hardship.
- The borrower is taking actions to strengthen its balance of payments.
- Reference note in source: 1 See Press Release 97/59.
Statement from IMF Managing Director
- Horst Köhler commented on the Board's decision:
- "The decision of the Board shows the Fund's desire to help Argentina overcome its difficult economic and social situation."
- The Board welcomed the Argentine authorities' commitment to work closely with the IMF and develop a comprehensive strategy to restore sustained growth.
- The IMF stands ready, in cooperation with the World Bank and the Inter-American Development Bank, to assist in the development of such a strategy.
- The Fund will focus in core areas such as the exchange rate regime, the banking system, the fiscal policy framework and monetary policy regime.
Key statistics, dates, and references
- SDR 741 million (about US$933 million)
- January 12, 2001 (SRF approved as part of a stand-by credit)
- January 17, 2002 (original SRF repayment date)
- January 17, 2003 (end of the one-year extension; repayment obligation)
- Press Release references: Press Release No. 01/3; Press Release 97/59
Source: IMF Press Release No. Press Release No.02/2 — "Press Release: IMF Extends Argentina's SRF Repayment by One Year", January 16, 2002.