Fri. Sep 30th, 2022

Washington, September 19 (EFE).- Argentina and the International Monetary Fund (IMF) announced on Monday the completion of the second review of the debt refinancing agreement, the agency said in a statement.

The deal is subject to approval by the IMF’s executive board, which is expected to meet next week, and once the review is complete, Argentina will have access to about $3.9 billion.

The IMF explained that the “recent and decisive” steps taken by Argentina to correct “previous setbacks” are helping to restore confidence and strengthen macroeconomic stability, including the restructuring of international reserves.

In that sense, he considered that the “determined” application of economic policies by the South American country “is essential to consolidate the busy economic stability and to face the challenges Argentina has entered, especially high and persistent inflation.”

The IMF and Argentina’s technical staff agreed that the objectives established in the ratification of the agreement will remain unchanged until 2023, with two main ones: reducing the fiscal deficit to 2.5% of GDP in 2022 and net growth. International reserves of $5.8 billion this year.

The agreement comes days after Argentina’s Economy Minister Sergio Massa traveled to the United States, an eight-day trip that included a meeting with the agency’s managing director, Kristalina Georgieva.

After the meeting between the two, Georgieva congratulated Massa’s team for the move to “stabilize the market and reverse a scenario of high volatility”.

One of the main topics discussed at the meeting was the quarterly review of this agreement, the Enhanced Facility Program (EFF), which the IMF and Argentina sealed last March, a debt refinancing agreement for about 45,000 million dollars that must be reviewed every three times. months

The IMF noted in Monday’s statement that most of the program’s quantitative objectives have been met by the end of June 2022.

Despite a “more difficult global environment”, thanks to the “decisive” actions of President Alberto Fernandez’s new economic team, “market pressures are dissipating” and the growth outlook remains unchanged, with 4% for this year, the IMF said.

Massa took office on August 3 and replaced Silvina Batakis, who lasted only three weeks as economy minister, amid a strong split between Kirchner’s party led by Vice President Cristina Fernández and the sector of Peronism with Alberto Fernández. .

Since taking office as minister, the politician has promoted measures aimed at controlling spending, easing the financial crisis and boosting international reserves, but many analysts believe a more aggressive plan is needed to stop a sharp rise in prices.

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