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IMF APPROVES REQUEST FROM GOVERNMENT OF ARGENTINA

 WASHINGTON, Dec. 30 /PRNewswire/ -- The International Monetary Fund has approved a request by the government of Argentina that the amount of its current extended arrangement be augmented by the equivalent of special drawing rights (SDR) 333.9 million (about US$460 million) for interest support in connection with debt and debt-service reduction operations. The IMF has also approved Argentina's request that amounts set aside from drawings under the extended arrangement, totalling SDR 292.4 million (about US$403 million), be released. The IMF authorized the disbursement of SDR 90.4 million (about US$124 million) related to set asides from drawings scheduled for March and June 1993. Argentina's use of IMF resources in support of its debt and debt-service reduction operations totals the equivalent of SDR 716.7 million (about US$987 million). Finally, the IMF has also completed the December 1992 review under the extended arrangement with Argentina and, accordingly, SDR 145.9 million (about US$201 million) are available immediately.
 In March 1992, the IMF approved a three-year extended arrangement for Argentina for SDR 2,149.3 million (about US$2,961 million) and approved the country's request that amounts under the arrangement be set aside for debt reduction operations with its commercial bank creditors, as part of the IMF's strengthened debt strategy. At the same time, the Argentine authorities stated their intention to request that the amount under the extended arrangement be augmented once agreement was reached on a debt-reduction package with commercial banks (see Press Release No. 92/27).
 The agreement, which Argentina and its bank creditors signed on Dec. 6, 1992, covers an estimated total of US$29.2 billion, including eligible bank claims of US$20.9 billion and interest arrears of US$8.3 billion. The net reduction in contractual claims implied by the agreement is estimated to be equivalent to a buyback at 38 cents on the dollar, and the reduction in debt-service obligations (principal and interest) will be about US$980 million a year for the remainder of the decade. The agreement will help support Argentina's economic reform program by improving the prospects for external viability, access to international capital markets, and the climate for private investment.
 -0- 12/30/92
 /CONTACT: International Monetary Fund, External Relationas Department, 202-623-7100/


CO: International Monetary Fund ST: District of Columbia IN: FIN SU:

KD -- DC011 -- 0676 12/30/92 15:48 EST
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Publication:PR Newswire
Date:Dec 30, 1992
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