According to Bloomberg News, the International Monetary Fund (IMF) will be holding discussions in an upcoming informal meeting about potentially providing Argentina with a new loan amounting to $20 billion. The loan is expected to be in the form of a four-year extended fund facility, equivalent to about 15 billion Special Drawing Rights. The IMF declined to comment on the report, and there was no immediate response from the Argentine government.

Recent developments in Argentina's lower house saw the passing of a decree that supports a new IMF program. This approval allows the government to initiate discussions with the IMF to strengthen central bank reserves and potentially remove capital controls. The decree outlines that the extended fund facility is planned to have a 10-year repayment period with a grace period of four years and six months. It also mentions that the new funds will be utilized to settle Treasury debt with the central bank.

Argentina, dealing with negative net foreign currency reserves due to past overspending, currency crises, and defaults, has a history of 22 loan programs with the IMF including a $44 billion deal in 2022, which is being repaid. IMF Spokesperson Julie Kozack stated on March 6 that progress is being made towards a program with Argentina and that they are collaborating positively with Argentine authorities. Finalizing the negotiations and loan agreement would be subject to approval by the IMF Executive Board.

When it comes to higher loan amounts exceeding the normal borrowing limits, known as "exceptional access," the IMF procedures necessitate greater involvement from the Executive Board upfront. This involves consultations between IMF staff and the board before finalizing discussions on a program and announcing any proposed level of access as per the established procedures.