The International Monetary Fund (IMF) has said it is looking forward to an "early finalisation" of a short-term deal with Argentina.

Following a meeting of its executive board, the IMF said in a statement that it had recognised "greater economic stability seen during the second half of 2002".

It added that negotiators would be leaving for Buenos Aires on Wednesday evening to start talks.

It is hoped the negotiations will lead to the rescheduling of part of Argentina's debt.

"Board members looked forward to the early finalisation of a short-term economic programme that would be a step toward the more comprehensive programme Argentina needs to restore growth and place the economy on a sustainable path," the IMF's statement said.

"A fund mission will travel to Buenos Aires today (Wednesday) to pursue discussions with the authorities on their request for a transitional program with the IMF," the statement added.

Currency changes

On Tuesday, Argentina relaxed some currency rules in an attempt to normalise the country's financial system.

The move put Argentina in compliance with one of the IMF's key demands for signing an agreement.

The currency restrictions which have been relaxed were put in place last year to try and support the country's currency, the peso, after the government was forced to devalue it.

Argentina's Central Bank said it had decided to relax the rules because the economic situation had become more stable.

The peso had fallen sharply in the first few months of last year, but recently its value has remained relatively steady.

The relaxation of the rules will allow companies to send dividends and earnings to overseas head offices without restrictions, and curbs on payments for imports have also been lifted.

Default

Argentina carried out the biggest ever default by an international borrower more than a year ago.

Since then talks with the IMF have failed to reach an agreement on resuming aid.

In October, Argentina defaulted on a loan with the World Bank which put it on a par with Iraq and Zimbabwe in terms of defaulting on multilateral loans.