Many Argentines are angry about the economic crisis

The move paves the way for the release of $307m (�193m) in cash which the nation will use to repay earlier IMF loans.

It is another step on the long road to economic recovery for Argentina.

The country defaulted on a debt of $95bn in January 2002 after a crippling four-year recession.

On track

In January, the IMF gave Argentina about $6.78bn in credit and loan repayment extensions, helping the country avoid default on earlier loans from the IMF.

"The arrangement is designed to cover all payment obligations to the IMF through August 2003," the IMF said in Wednesday's statement.

"It is expected that Argentina will use these resources to repay obligations falling due to the IMF."

The latest IMF approval was widely expected after the lender said in early March that Argentina's economic programme was on track.

Bottoming out

Meanwhile, the Argentine government said its economy shrank by 10.9% in 2002, in what it said was the worst performance in a century.

A record debt default and steep devaluation flattened consumer spending and sent investors fleeing.

Gross domestic product sank last year to levels on a par with the United States during the Great Depression of the 1930s.

The government is forecasting 4.2% growth this year as the economy bottoms out.

And some analysts expect to see growth of as much as 10 % this year.