IMF Offers Argentina $8 Billion By MARTIN CRUTSINGER : AP Economics Writer Aug 21, 2001 : 9:13 pm ET

WASHINGTON -- The International Monetary Fund said Tuesday it will offer Argentina an additional $8 billion in loans in an effort to help the country through a severe economic crisis.

The decision will boost the economic resources the IMF will make available to Argentina to $22 billion, up from the current level of $14 billion in support, according to IMF Managing Director Horst Koehler.

Koehler made the announcement on the 12th day of talks Argentine officials were holding in Washington with the IMF.

The announcement marked the latest effort by the IMF to stabilize a severe economic crisis in Argentina, which is struggling to pull out of three years of a steep recession.

Argentina's problems have sent shock waves through financial markets in Brazil and other countries in the region, raising fears of a repeat of the 1997-98 Asian currency crisis.

In a statement, Koehler said that $5 billion would be added to Argentina's emergency credit line immediately upon approval of his recommendation by the IMF's 24-member executive board. Koehler said the other $3 billion would be added later.

Koehler made his announcement after several hours of closed-door talks with the IMF's 24-member executive board. Because of the way the IMF operates, Koehler would not have made the announcement of increased support if he had not won the go-ahead from the executive board.

-- Anonymous, August 21, 2001