Jan. 27 (Bloomberg) -- Some European members of the International Monetary Fund are seeking to stall the fund's approval of Argentina's inflation and budget targets, daily Ambito Financiero reported.

The IMF board will meet tomorrow to vote on fiscal targets that would allow the release about $330 million in fresh funds to Argentina as part of a $12.3 billion loan accord reached in September, the newspaper said.

Members from Holland, Belgium, Switzerland and Sweden may abstain from the vote, Ambito cited an unidentified government official as saying. IMF Managing Director Horst Koehler said Jan. 9 he would recommend that the IMF board approve the targets, saying the government had lived up to promises to raise more revenue.

Argentina, which defaulted on $95 billion of bonds in late 2001 and devalued its currency a month later, will use the money to ensure it keeps up payments to multinational lenders. The fund last month withheld the loan because of government delays in moving ahead with debt restructuring talks.

(Ambito, 1-27 p. 3) To see Ambito's Web site, click {AMFN <GO>}.

Last Updated: January 27, 2004 10:04 EST