The spokesperson for the International Monetary Fund (IMF), Julie Kozack, praised this Thursday the “impressive” results of the economic stabilization plan carried out by the Argentine president, Javier Milei, and confirmed that work continues on a new program with the country. South American.
“Authorities are now exploring the option of moving to a new funding arrangement. I can also say that, as you know, the Argentine authorities have continued to implement their economic stabilization program and it is yielding impressive results,” he noted in a press conference.
The IMF Executive Board completed the eighth review of the current program with Argentina on June 8 and total disbursements reached US$41.4 billion. There are two reviews left before the plan is concluded.
The results of the tough adjustment plan carried out by Milei when he assumed the Presidency almost a year ago include “a considerable reduction in inflation, fiscal surpluses and better coverage of reserves,” said the institution’s spokesperson.
“IMF staff continue to work closely with the authorities and stand ready to help Argentina and its people consolidate recent progress and address remaining challenges,” he added.
Kozack was also asked about the recent exchange reforms. This Tuesday, the Argentine Government repealed 43 regulations that allowed the State to intervene in markets, establish prices for consumer products, regulate service costs and make requests for information from companies and educational institutions.
“The stabilization program has produced better results than expected to date. To maintain the durability of these impressive results in terms of stability and growth, it remains essential, of course, to continue adopting a coherent set of policies, including the fiscal, monetary and exchange rate areas,” he stated.
In its latest annual meetings, the IMF confirmed that the Argentine authorities are studying a new debt refinancing program to replace the current one, which will end next year.
“Our hope is that we will be in a position to provide a little more information about this in terms of strategy and commitment in the coming weeks,” Luis Cubeddu, the IMF’s person in charge of the Argentine case, said at a press conference.
Argentina is the largest debtor country to the IMF and, in turn, that organization is the main creditor of the South American country.
In March 2022, the then Government of Alberto Fernández (2019-2023) signed an agreement with the IMF to refinance loans for about 45 billion dollars that the organization had granted to Argentina in 2018, during the Presidency of the conservative Mauricio Macri (2015 -2019).
The pact includes quarterly reviews on the level of compliance with demanding goals in terms of fiscal discipline, accumulation of monetary reserves and limits on monetary issuance.
The approval for new disbursements to Argentina by the organization depends on the fulfillment of these goals and the approval of each review, funds that, in turn, the country uses to cancel its debt with the entity, which amounted to 40,899 million. dollars at the end of 2023.
With information from EFE.
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