IMF supports Milei’s reforms, but says there are still risks to the…

IMF supports Milei’s reforms, but says there are still risks to the…
IMF supports Milei’s reforms, but says there are still risks to the…
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By Rodrigo Campos and Jorgelina do Rosario

NEW YORK (Reuters) – The International Monetary Fund (IMF) said Argentina is committed to accumulating international reserves and curbing government debt financing by the country’s central bank in the latest review of its loan program. 44 billion dollars, when the global lender supported a set of reforms proposed by the new administration of President Javier Milei.

The IMF called Milei’s stabilization plan for Argentina’s struggling economy “bold” and “much more ambitious” than those proposed by his predecessors in the country, citing his commitment to reforms as a positive aspect of his landslide electoral victory in the end. last year, considering the challenges of its implementation.

“Strong ownership by authorities and electoral commitment to eliminate fiscal deficits and long-standing impediments to growth (many of them benefiting private interests) mitigate implementation risks,” the Fund said in a technical report on Argentina published this Thursday.

However, the IMF acknowledged that the risks to the program’s success are high, given the “very difficult legacy” of failed policies and a “complex political and social landscape, with a fragmented Congress, falling real wages and high poverty.”

The IMF review set new central bank reserve accumulation targets, moving from a previous target of $4.3 billion to a target of $6.0 billion by the end of March. The target for the end of June was raised from 7.3 billion dollars to 9.2 billion dollars and the target for the end of September was set at 7.6 billion dollars.

The global lender extended the duration of its $44 billion program by three months to give it time to implement the government’s current stabilization plan and build reserves, with the program now in effect until December 31, compared to the previous cut. September 24th.

The remaining reviews of the program, as previously reported by Reuters, were scheduled for May, August and November this year.

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The article is in Portuguese

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