BUENOS AIRES (dpa-AFX) – Argentina, which is highly indebted, has taken out a multi-million dollar loan from Qatar to pay interest owed by the International Monetary Fund (IMF). The South American country borrowed 775 million US dollars from the emirate in the form of special drawing rights, the government in Buenos Aires announced on Friday. Argentina was thus able to settle the IMF’s claims due on Friday without touching its scarce currency reserves.
The Special Drawing Right is a reserve fund introduced by the IMF that gives all member states additional financial leeway. Most recently, Argentina had already taken out loans from the Latin American Development Bank (CAF) and in China to meet its obligations to the IMF. The second largest economy in South America owes around 44 billion US dollars to the IMF.
Argentina has been in a severe financial and economic crisis for years. The inflation rate is 115 percent. The country suffers from a bloated state apparatus, low industrial productivity and a large informal economy that deprives the state of much tax revenue. The national currency, the peso, continues to depreciate against the US dollar, and the mountain of debt is constantly growing./dde/DP/jsl