Argentina gets $2 billion in IMF loan for recovery

The International Monetary Fund said it approved a $2.18 billion loan to assist recovery of Argentina's ailing economy. The loan is the latest in a series of financial moves to help Latin America stave off economic default and other problems that have buffeted the international monetary system in recent times.

Under the agreement, the IMF said Argentina agreed to cut its budget deficit from over 14 percent of gross domestic product in 1982 to 8 percent this year and 5 percent in 1984. The country also agreed to push up interest rates as a way of slowing inflation while keeping the value of the peso at a realistic level against other currencies.