IMF approves disbursement of US$4.7 billion for Argentina

IMF approves disbursement of US$4.7 billion for Argentina
IMF approves disbursement of US$4.7 billion for Argentina
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The executive board of the International Monetary Fund (IMF) approved, this Wednesday (31), a disbursement of around US$4.7 billion (R$23.3 billion) to Argentina, aiming to “support” the efforts of the government of President Javier Milei to reestablish macroeconomic stability”.

Since taking office less than two months ago, Milei has devalued the peso by 50%, started a price liberalization process and intends to modify hundreds of rules and laws to try to reverse a crisis that keeps more than 45% of Argentines in poverty, with annual inflation of 211% in 2023.

The immediate disbursement “of around 4.7 billion dollars” allows “to support the authorities’ clear political efforts to reestablish macroeconomic stability”, says the IMF in a statement, in significant support for Milei, just as Congress debates a controversial package of ultraliberal reforms.

“An ambitious stabilization plan is being implemented to correct serious policy deviations in the last quarters of 2023”, when Peronist Alberto Fernández governed, he adds.

“The plan focuses on establishing a strong fiscal anchor, along with policies to permanently reduce inflation, rebuild reserves and address long-term distortions and problems”, he details.

However, the financial organization warns that “the path to stabilization will be challenging.”

See too

The council’s approval of the seventh review of the credit agreement with Argentina increases the amount granted to the South American country to around US$40.6 billion (R$201 billion), as part of a 44 billion aid program. (R$218 billion).

Argentina is facing a crisis with a shortage of currency, high debt in a context of practically no access to international credit markets.

In updating the World Economic Outlook, the IMF estimated on Tuesday that the country’s economic situation will be much worse than expected this year. In October, the financial institution predicted growth of 2.8% for the Argentine economy in 2024, but now projects a contraction of 2.8%.


The article is in Portuguese

Tags: IMF approves disbursement US4 .7 billion Argentina

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