BUENOS AIRES: Argentina’s President Mauricio Macri said Wednesday that the International Monetary Fund has agreed to accelerate funding in support of his government’s austerity program, but the move did little to calm the market as the country’s currency came under renewed pressure.
IMF chief Christine Lagarde said the Washington-based lender would look at speeding up payments of the bank’s $50 billion loan after talks with Macri earlier Wednesday.
The IMF approved the $50 billion, three-year standby loan in June.
Lagarde said the IMF would work to strengthen its arrangement with Argentina and “re-examine the phasing of the financial program.”
The “more adverse international market conditions” battering Argentina’s economy “had not been fully anticipated,” she admitted in a statement.
Macri called for the early release of the funds in a phone call with Lagarde on Wednesday.
It came amid heightened volatility in Argentina’s financial and currency markets, which have been battered by uncertainty over inflation, an economic downturn and budget deficits.
The Argentine peso has lost more than 40 percent of its value against the dollar this year. Inflation is projected to surpass 30 percent by the end of 2018.
And the peso continued its decline Wednesday, plummeting 6.99 percent through the day to fall to 34.48 to the dollar by the close.
Macri had sought to soothe the turbulence in a statement before markets opened, assuring Argentines that help is on the way.
“Over the past week, we have had new expressions of lack of confidence in the markets, especially over our ability to obtain financing for 2019,” Macri acknowledged.
He said the IMF would provide “all the funds necessary to guarantee the fulfillment of the financial program next year.”
In return for an accelerated loan payment, the government has committed to reducing its budget deficit to 2.7 percent this year, from 3.9 percent in 2017, and to 1.3 percent of GDP next year.
Doubts over Argentina’s ability to repay heavy government borrowing have grown and analysts said the move reflected growing desperation in Macri’s center-right government.
“The announcement was vague and was made by the president, which has its risks,” said analyst Lorenzo Sigaut of consultants Ecolatina, who said it would have been more convincing if the announcement had been made by the economy minister.
Overall doubts of an Argentine default on borrowings had been assuaged “only until Macri’s term ends (in December next year) but as of 2020, they remain latent.”
“The dollarization of assets is fueled internally by Argentines’ distrust of the peso, because the government has promised much on the economy but hasn’t delivered,” said Sigaut.
Part of the $50 billion loan is to be allocated to support the budget, and the rest to the country’s central bank to shore up the peso over a three-year period.
The first $15 billion tranche has already been released.
Economist Matias Carugati said there was a lack of information coming from the government to calm the markets.
“We know that the IMF is advancing money to cover us next year, but how much will they advance us and under what conditions?” he asked.
He maintained however that “the risk of a default is exaggerated.”
“Argentina does not have a solvency problem, but more a short-term liquidity issue. It’s urgent to achieve financial calm and then see how to repair the damage.”
The economy contracted 6.7 percent in June, the third month in a row of negative growth, and the annual growth rate was a negative 0.6 percent.
Argentina, IMF agree accelerated loan payout
Argentina, IMF agree accelerated loan payout
- MF chief Christine Lagarde said the Washington-based lender would look at speeding up payments of the bank’s $50 billion loan after talks with Macri earlier Wednesday
- The Argentine peso has lost more than 40 percent of its value against the dollar this year
Saudi Maaden reports 156% profit surge to $2bn on strong commodity prices, record production
RIYADH: Saudi mining and metals company Maaden has reported a 156 percent jump in its net profit attributable to shareholders for 2025, driven by higher commodity prices, record production volumes, and a one-off bargain purchase gain.
The state-backed giant posted a net profit of SR7.35 billion ($1.95 billion) for the full year 2025, an increase from SR2.87 billion in the previous year. The firm’s revenue surged by 19 percent to SR38.58 billion, up from SR32.55 billion in 2024.
This comes as Saudi Arabia steps up efforts to expand its mining sector as a pillar of economic diversification, encouraging international participation and private investment to unlock the Kingdom’s estimated $2.5 trillion in untapped mineral resources under Vision 2030.
In a statement on Tadawul, the company said: “Performance was led by record phosphate production, near record aluminum production, an increase in all three of Maaden’s main output commodity prices.”
The performance was also fueled by a 60 percent increase in gross profit, which reached SR14.79 billion. In its annual results announcement, Maaden attributed the top-line growth to “higher commodity market prices for phosphate, aluminum and gold business units,” as well as increased sales volumes in its phosphate and aluminum segments. This was partially offset by slightly lower sales volume in the gold unit.
Maaden’s CEO, Bob Wilt, hailed 2025 as a transformative year for the company, marked by strategic growth and operational excellence. “This was a great year for Maaden’s strategic growth. We delivered strong financial results and sustained operational excellence across the business,” he said in a statement.
“This was driven by growth in production across all businesses, including record-breaking DAP (di-ammonium phosphatevolumes), disciplined cost control across and a clear commitment to our role as a cornerstone of the Saudi economy,” Wilt added.
Profitability was further bolstered by an increased share of net profit from joint ventures and an associate. This included a one-off bargain purchase gain of SR768 million related to Maaden’s investment in Aluminium Bahrain B.S.C. The company also benefited from lower finance costs.
The fourth quarter of 2025 was strong, with Maaden swinging to a net profit of SR1.67 billion, compared to a loss of SR106 million in the same period of the prior year. Quarterly revenue rose 7 percent to SR10.64 billion.
The firm achieved record production of di-ammonium phosphate, reaching 6.72 million tonnes for the year, a 9 percent increase. Aluminum production remained near-record levels, while the company added a net 7.8 million ounces to its reportable gold mineral resources through discovery and resource development.
The phosphate division saw sales jump 17 percent to SR20.77 billion, with the earnings before interest, taxes, depreciation, and amortization margin expanding to 47 percent. The aluminum business reported a 9 percent increase in sales to SR10.99 billion, with EBITDA more than doubling in the fourth quarter.
Looking ahead, Wilt emphasized that the pace of growth will accelerate as the company advances key initiatives, including the Phosphate 3 Phase 1 and Ar Rjum projects, which remain on budget and schedule. Maaden has also secured a gas supply for its future Phosphate 4 project.
“This pace of growth will only accelerate. Not only as we advance projects and increase the scale of our exploration program, but as we continue to grow production and implement technology that will further modernize, streamline and unlock value,” Wilt added.
Earnings per share for the year rose sharply to SR1.91, up from SR0.78 in 2024. Total shareholders’ equity increased by 18.7 percent to SR61.59 billion.
