Argentina has struck an agreement in principle with the International Monetary Fund over a new $44.5 billion standby deal, both sides said on Friday, a major breakthrough in tense talks to restructure loans the country cannot repay.
The South American country has been locked in talks for over a year with the IMF over a new program to revamp debt outstanding from a failed $57 billion loan deal from 2018, the fund's largest ever. It faced a $700 million payment due Friday.
"We had an unpayable debt, which left us without a present and a future. Now we have a reasonable agreement that will allow us to grow and meet our obligations through growth," President Alberto Fernandez said in an address to the nation.
He said the agreement would not limit Argentina's economic plans or spending, which had been something of a red line for a country emerging from years of recession and the harsh impact of the Covid-19 pandemic.