Buenos Aires, 4 March 2022 (TDI): Argentina and The International Monetary Fund (IMF) closed a $45 billion debt deal, the IMF announced on Thursday.

The IMF also added that the two sides had reached an agreement on a 30-month extended fund facility. The agreement also includes a program to help mitigate inflation and deliver positive interest rates.

Additionally, the agreement will also address the country’s most pressing economic challenges, which include the implementation of a new monetary policy to help public financing. This deal comes off the heels of a failed 2018 $57 billion credit facility.

The IMF and Argentina’s Congress are yet to approve the agreement. Argentina’s Finance Minister, Martin Guzman, and Chief IMF negotiator said the deal would be sent to the lower house of congress by next week and if approved, the payments would begin in 2026 and end by 2034.

Argentina was set to repay a loan of $19 billion to the IMF but experts believe the country would not be able to honor this obligation unless another deal was reached.

Interest has been rampant in the country over the past few years, reaching 50% per year. Net central, bank reserves have fallen into the negative as the country paid $1 billion in interest to the fund earlier this year.

The main point of disagreement between both has been over rising energy prices, as a result of the deal energy prices are set to rise for the average consumer by 150%.

According to the IMF, this agreement also aims to enhance growth and resilience that includes domestic savings, which will further strengthen governance and transparency and strengthen labor, gender, and financial inclusion.

Steps will also be taken to encourage investment in sustainability and energy. These measures will greatly help the longstanding economic shortcomings of the country.