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BUENOS AIRES, June 25 (Reuters) - Argentina, the International Monetary Fund's long-term problem child and biggest debtor, once again needs to seek forgiveness: this time for falling short on foreign currency reserve build-up targets linked to a new $20 billion deal.

The South American country is likely to get it, too, analysts and former officials said. Argentina struck its latest deal - its 23rd - with the Washington-based lender in April, needed to help roll over an earlier $44 billion deal and give the government of libertarian Javier Milei financial firepower to undo capital controls.

The front-loaded deal came with economic targets attached to unlock further funds, including on inflation and rebuilding depleted central bank foreign currency reserves, that were deep in the red when Milei took office in late 2023. Milei has tempered inflation with tough austerity and guided the country out of a recession, but accumulating dollars has proven tough, leaving levels short of those demanded by the IMF.

However, former government and IMF officials said that Milei had done enough to gain some leeway, with his cost-cutting having overturned years of deep fiscal deficits, winning over markets and gaining plaudits from IMF leaders.

"I think they will forgive them even if they (the IMF) then ask for more later," Claudio Loser, former IMF director for the Western Hemisphere, told Reuters.

That would likely come in the form of a waiver, approving the first program review despite missed targets on reserves. An IMF team arrived in Argentina on Tuesday for that review.

Daniel Marx, former Argentine finance secretary from 1999 to 2001, told Reuters that the next disbursement - some $2 billion - would require the IMF to give special dispensation.

"Most likely, the disbursement won't be automatic, but it will require a waiver," he said.

"It was thought that the central bank would have intervened by accumulating reserves. This hasn't happened, at least until now."

The Ministry of Economy and presidency did not respond to a request for comment. The central bank declined to comment and said talks with the IMF technical team were just starting. The IMF pointed to a statement about its team arriving in Argentina.

Key to the waiver is Milei's strong record on the fiscal surplus with his tough "deficit zero" drive. Last week the government said it would deepen cost cutting in order to hit a surplus target of 1.6% of GDP.

Minister of Economy Luis Caputo said earlier this month reserves accumulation was no longer as important as before with a freer float for the peso currency and the central bank better financed. He flagged IMF backing for Milei's reforms.

Aldo Abram, director of the Fundación Libertad y Progreso in Buenos Aires, estimated that the country might be $500 million to $1 billion below the agreed reserves target, but it shouldn't block new funds being disbursed.

"That won't cause major problems for the Fund," he said. "I think forgiveness (the waiver) will be approved quickly and the disbursement may take a week or two."

Lima, Jun 29 (Prensa Latina) Statements made by the Minister of Justice, Enrique Alcántara, published today, ruled out the possibility of Peru accepting an eventual request from the United States to receive detainees in that country.

Alcántara said that it would be counterproductive “to receive extradited or criminals of any other nationality in our country” and added that “this possibility does not exist because it does not comply with the current regulations” in Peru.

He also explained that Peru cannot receive inmates from other countries because its prisons are overcrowded, which is why five new prisons are being built.

He also reminded that there is only an agreement with the United States on the exchange of prisoners, only for cases in which nationals of one country who commit crimes in the other serve their sentences in their country of origin, if they so request.

The head of state thus clarified versions to the contrary citing previous statements of his that were misinterpreted, he said, and pointed out that he only affirmed that Peru does not rule out any measure that contributes to the fight against citizen insecurity.

“We were referring exclusively to the possibility of sending inmates to other countries, not to receive them,” he said about the possibility, under analysis, of sending very dangerous criminals from here to a maximum security prison in El Salvador.

He added that the Government has not made any decision on this issue and is analyzing the conditions under which prisoners could be sent to El Salvador for a certain period of time, if the Peruvian Constitution and laws allow it.

Jurists and former prison authorities consider this possibility unfeasible due to the high cost that Peru would have to pay to the Central American country, besides the existence of legal obstacles.