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IMF frees up $3.8 billion more in funds for Argentina

IMF building
(File Photo: Jordan News)

WASHINGTON, DC — The International Monetary Fund’s (IMF) board on Friday approved a new loan tranche of $3.8 billion to debt-plagued Argentina, the crisis lender said in a statement.اضافة اعلان

The decision, approved by the IMF’s technical teams in September, was taken at the end of the second review of the Extended Fund Facility worth a total of $44 billion over 30 months.

The latest tranche brings $17.5 billion to the total disbursed to Buenos Aires to strengthen the country’s economic stability and promote sustainable growth.

“Argentina’s new economic team adopted decisive corrective measures that are starting to restore confidence and policy credibility,” IMF Managing Director Kristalina Georgieva said in a statement.

Georgieva’s praise appeared aimed at Argentina’s new economic minister Sergio Massa, who pledged in early August to honor the commitment with the IMF to reduce the country’s public deficit to 2.5 percent this year.

But she nevertheless described the economic situation as “fragile,” and noted that “prudent macroeconomic policies and steadfast program implementation” including expenditure controls and tighter social spending will still be needed.

The agreement with the IMF, signed last March, provides for a series of measures aimed at controlling the country’s chronic inflation — which soared to 50.9 percent last year and 71 percent, year on year, in July 2022 —  and reducing its public deficit towards equilibrium in 2025.

President Alberto Fernandez’s government, under the IMF deal, must boost its international reserves and reduce the fiscal deficit from 3 percent of gross domestic product in 2021 to 2.5 percent this year, 1.9 percent in 2023 and 0.9 percent in 2024.

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