IMF approves $44 billion aid to Argentina

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“This is an important step for Argentina in the macroeconomic stabilization process that allows the country to continue to create the conditions for sustaining the strong economic recovery it is experiencing,” said Martin Guzman, Argentina’s Finance Minister. At AFP in Paris.

The International Monetary Fund (IMF) board of directors on Friday approved a $44 billion (40 billion euro) aid program for Argentina, the legacy of a record loan contracted to the monetary institution by the previous government in 2018. immediately distributed a tranche of $9.65 billion (8.78 billion euro).

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Also read: Argentina parliament gives green light to IMF debt deal

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It was announced that the 30-month aid plan given under the “extended loan facility” of the IMF should enable Argentina to “strengthen debt sustainability, fight high inflation, increase reserves, fill the social gaps of the country”. Press release.

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According to Martin Guzman, who met with the Paris Club and the International Energy Agency (IEA) in France, refinancing 2018 and 2019 debt will provide “more stability” and encourage “growth of investments”. recovery of employment and production”.

“Political consensus needed to support the reform agenda”

“While the economic and employment recovery continues, Argentina continues to face exceptional economic and social challenges,” said IMF Managing Director Kristalina Georgieva, “declining per capita income, high levels of poverty, persistently high inflation, heavy debt burden and low foreign reserves.” ”.

Making the most of INDEC’s most economic results, with the best, best, and cutting-edge technology in Argentina, truly forward-looking, better results in 2021.

GDP: +10.3%
Employment: +9.7%
Inversion: +32.9%

— Martin Guzman (@Martin_M_Guzman) 24 March 2022

In this context, it believes that the economic program prepared by the Argentine government and supported by the Fund “sets pragmatic and realistic targets as well as credible policies that will strengthen macroeconomic stability”.

The Argentine Congress approved this amount of loans last week. However, he had not voted for macroeconomic policies themselves.

Reread:

Reminding that the program approved by the IMF consists of consolidating the budget, which will strengthen sustainability, and supporting growth, Kristalina Georgieva said, “A strong political and social consensus is essential to support the implementation of the reform program.” persistent and high inflation”.

a specific context

But he also points to “extraordinarily high” risks to the program, as the effects of the war in Ukraine are already starting to materialize.

“In this context, early readjustment of the program, including the identification and adoption of appropriate measures as needed, will be essential to achieving program objectives,” he said.

Source From: Google News

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