The International Monetary Fund (IMF) and World Bank approved new bailout packages for Argentina on Friday.

The $20 billion (€18.5 billion) IMF bailout and the World Bank's $12 billion package will boost Argentine President Javier Milei's attempts to kickstart the South American nation's struggling economy.

The Inter-American Development Bank, meanwhile, also announced a $10 billion deal on Friday.

In a speech broadcast on national television, the far-right, libertarian Milei said the billions of dollars in aid would help Argentina's economy grow "like never before."

"Under these conditions, Argentina will be the country with the strongest economic growth in the next 30 years," Milei said.

What did the IMF and World Bank say?

In a statement on X, the IMF's Managing Director Kristalina Georgieva said the bailout was approved "in recognition of the impressive progress in stabilizing the economy" Milei has achieved.

"It is a vote of confidence in the Government's determination to advance reforms, foster growth and deliver higher standards of living for the Argentine people," she said.

The World Bank, meanwhile, said the support packages represent "a strong vote of confidence in the (Argentine) government's efforts to stabilize and modernize the economy."

It added that the bailout would help attract private investment and spur the creation of more jobs.

What do the bailouts mean for Milei and Argentina?

The announcements are a huge win for the populist Milei, who has described himself as an "anarcho-capitalist."

Since taking office in December 2023, Milei has enacted a series of aggressive economic reforms designed to reduce inflation that have seen thousands of civil servants lose their jobs and government programs slashed.

The austerity measures succeeded in bringing down soaring inflation, but they capped growth and led to large protests across the country, where more than half the population live below the poverty line.

Following the bailout approvals, the Argentinian government announced it was easing its strict currency controls.

Economy Minister Luis Caputo confirmed that Argentines could now buy unlimited amounts of US dollars, removing a previous monthly limit of $200.

Since becoming a member of the IMF in 1956, Argentina has been bailed out 23 times.

Edited by: Wesley Dockery