News In Brief

Argentina, IMF reach accord on higher borrowing limits

Argentina has reached agreement with the International Monetary Fund to raise its borrowing limit, but bankers say economic growth - its security for a bigger overdraft - will be difficult to achieve.

The agreement, reached after 10 months of negotiations, still has to be formally approved by the fund's board of directors. It is vital for rescheduling Argentina's $44.4 billion debt and obtaining more credit, and will last 15 months. It provides for an IMF loan of 1.42 billion special drawing rights (SDRs), the equivalent of $1.4 billion.