ARGENTINA’S cash-strapped government will raise US$3.2 billion in hard currency in order to meet debt repayments via an issuance of 10-year bills to the central bank, according to a decree in the official gazette on Friday (Jan 5).

The new administration of libertarian President Javier Milei is battling against the country’s worst economic crises in two decades, including inflation racing towards 200 per cent, a lack of foreign currency reserves and rising poverty.

The government is also expected to meet a delegation from the International Monetary Fund (IMF) on Friday, looking to hammer out an agreement on a delayed review of the South American country’s US$44 billion programme.

Analysts say that the IMF meeting is a key step towards Argentina unlocking the next tranche of financing from the Washington-based lender, estimated at around US$3 billion.

Argentina recently paid some US$920 million to the IMF and faces an upcoming capital payment to the organisation for about US$1.95 billion in mid-January. REUTERS