Washington (AFP)
The Board of Directors of the International Monetary Fund has approved a $44 billion aid program for Argentina, with an immediate disbursement of $9.65 billion, the financial institution said in a statement. It aims to allow Argentina to “enhance debt sustainability, combat hyperinflation, increase reserves, and close the country’s social gaps.”
“While an economic recovery and job recovery is taking place, Argentina continues to face exceptional economic and social challenges,” said IMF Managing Director Kristalina Georgieva, noting “low per capita income, high poverty levels, persistent hyperinflation, a severe debt burden and weak external reserves.”
In these circumstances, it considered that the economic program developed by the Argentine government and supported by the Fund “identifies practical and realistic goals, as well as credible policies to enhance macroeconomic stability.”
The Argentine Congress last week gave its approval for the loan amount, but it did not vote on macroeconomic policies.
“A strong political and social consensus is essential to support the implementation of the reform programme,” Georgieva said.
She stated that the program approved by the Fund provides for correcting the budget and supporting growth, which will allow to enhance the ability to sustain debts and control “continuous and high inflation.”
On the other hand, she pointed to the “exceptionally high” risks that the program faces at a time when the consequences of the war in Ukraine are beginning to emerge.
She stressed that “in this context, it will be necessary to re-correct the program early, including identifying and approving appropriate measures, when necessary, in order to achieve the program’s objectives.”
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