BUENOS AIRES, Jan 11, 2024 (BSS/AFP) - Argentina and the International Monetary Fund announced an agreement Wednesday to release $4.7 billion dollars as part of a debt restructuring plan for the troubled South American giant.

Latin America's third-biggest economy is on its knees after decades of debt and financial mismanagement, with inflation surpassing 160 percent year-on-year and 40 percent of Argentines living in poverty.

The package is still subject to approval by the IMF board of directors.

With this accord new president Javier Milei, who took power in December and inherited a deep social, economic and financial crisis, puts back on track a $44 billion dollar bailout package with the IMF that dates back to 2018.

The outgoing administration of Alberto Fernandez renegotiated the loan, but the recession that accompanied the Covid-19 pandemic and a severe drought this year made it difficult for Argentina to meet the targets agreed with the IMF.

This new accord was agreed during a review of that loan package. "This is not a new agreement," economy minister Luis Caputo said as he announced the accord.

The libertarian Milei has taken steps to fulfill his campaign promise to slash public spending and shake up an economy riddled with inflation and other woes.

Milei also presented to Congress last month a package of modifications to laws that will allow the privatization of more than 40 public companies and will limit the right to assembly and demonstration.