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Argentina, IMF Reach Understanding on Fiscal Path for Deal

  • Nation plans to make payment due Friday after week of talks
  • Negotiations on details with IMF staff continuing, sources say
A man walks past a sign against paying the debt with the IMF pasted on a store for rent during the lockdown imposed by the government against the spread of the new coronavirus, in Buenos Aires, on May 22, 2020.

A man walks past a sign against paying the debt with the IMF pasted on a store for rent during the lockdown imposed by the government against the spread of the new coronavirus, in Buenos Aires, on May 22, 2020.

Photographer: JUAN MABROMATA/AFP
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Argentina and the International Monetary Fund have reached an understanding on when the nation will achieve a balanced primary budget, marking a first key step to renegotiating more than $40 billion of debt, according to people familiar with the talks.

The agreement comes after talks intensified in the past week following months of delays, and Argentina plans to make a payment of more than $700 million due on Friday, the people said, asking not to be named without permission to speak publicly. The parties have agreed for the country to reach a balanced primary budget -- that is, a budget without including interest payments -- in 2025,  one of the people said.