First modification:
The mission of the International Monetary Fund (IMF) to Argentina indicated this Thursday, February 1, that the plan that the president, Javier Milei, plans to implement, is projected to be “much more ambitious” than the one presented by his predecessors to comply with the commitment. after the 'stand by' loan agreed under the mandate of Mauricio Macri. However, even though the organization agrees with the plan, it must overcome an escalation in Congress and growing protests from sectors affected by cuts.
The seventh visit of the IMF mission to Argentina ended with good news for the South American nation, which seeks to stabilize its economy. According to a report issued by the organization, resources in the order of 4.7 billion dollars were approved as a nod to the macroeconomic stabilization plan proposed by Javier Milei.
“The Board's decision makes possible an immediate disbursement of approximately $4.7 billion to address balance of payments needs and support the measures underway and the firm commitments of the authorities to restore macroeconomic stability. With this, the total disbursements under the agreement amount to approximately $40.6 billion,” reads part of the report.
On the other hand, the Government reported that part of the resources will be used to pay part of the loan agreed with the organization in 2018.
According to what was stated by the IMF, “the program suffered a deviation due to the large imbalances and distortions that worsened in Argentina.” On the other hand, he welcomes the steps taken by the new Administration to find solutions to the economic crisis.
“The ambitious agreed stabilization plan focuses on establishing a strong fiscal anchor that ends all central bank financing of the government. Achieving a primary fiscal surplus of around 2 percent of GDP this year will be underpinned by a combination of temporary import-related taxes and strengthening fuel taxes, along with efforts to rationalize energy subsidies and transportation, administrative costs and lower priority discretionary spending policies,” the statement reads in part.
While the plan proposed by the new Government comes into effect, as it must await a severe discussion in Congress, Argentines continue to look for formulas to deal with inflation, which closed in 2023 above 211%.
With Reuters
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