Argentina accepts IMF financial plan

Argentina has accepted the IMF's conditions for long-awaited aid to help end its worst financial crisis after a year of drawn…

Argentina has accepted the IMF's conditions for long-awaited aid to help end its worst financial crisis after a year of drawn-out talks.

Although it was unclear what the conditions were, the IMF has demanded measures to underpin a banking system hammered by last year's currency devaluation and public debt default, and a monetary anchor to suppress inflation.

A source close to the talks said the IMF would likely give Argentina three years to pay back around $5 billion in debt due through June under a new aid deal.

If the multilateral lender is satisfied with Argentina's economic performance between January and June, the fund could also lend the country enough cash to push back payments that come due in July and August, the source said.

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At around $1.7 billion, the IMF payments due this week account for nearly a fifth of current Central Bank reserves of around $10 billion. Argentina has already defaulted on World Bank debt.

President Eduardo Duhalde's government, struggling to bring Argentina to early presidential elections in April, has repeatedly refused to use reserves to pay its debt dues unless it has concrete guarantees it will be granted aid.