01/02/2024 – 15:18
After an intense loan renegotiation with the president of Argentina, Javier Milei, the International Monetary Fund (IMF) confirmed, this Thursday, the 1st, the release of US$ 4.7 billion in resources for the country. With this new installment, the total amount disbursed to Argentina could reach more than US$40 billion.
+IMF predicts global growth of 3.1% this year and recession in Argentina
In a note, the IMF states that the amounts released are intended to “support the political efforts of the new authorities to restore macroeconomic stability”, after several “severe deviations” in the last quarters of 2023.
The monetary institution classified the stabilization plan as “ambitious” and highlighted the focus on strong fiscal anchoring along with policies to reduce inflation in a sustainable way, rebuild reserves and resolve distortions that serve as impediments to Argentine economic growth.
“The authorities are committed to eliminating remaining restrictions that contribute to market distortion and multiplying exchange rate practices in the short term,” wrote IMF managing director Kristalina Georgieva, also defending the strengthening of Argentina's Central Bank.
“The stance of monetary policy must evolve to support monetary demand and disinflation, while the structure and operations of monetary policy will be adjusted to strengthen its anchoring role,” he added.
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