The southern country passed the review of the agreement with the International Monetary Fund with "better than expected" results. The agreement is subject to approval by the board of directors, which will meet in coming weeks.
The International Monetary Fund (IMF) announced this Monday the 13th that its technical staff reached an agreement with the Argentine government on the eighth review of the debt refinancing program, which paves the way for the disbursement of almost US$800 million.
In 2022, the IMF and the Argentine government agreed to a credit program under which the South American country receives US$44 billion over 30 months in exchange for increasing its international reserves and reducing the fiscal deficit, which was 3% of GDP in 2021, 2.5% in 2022, 1.9% in 2023 and, is scheduled to reach 0.9% of GDP in 2024.
"An understanding was reached on the policies to continue strengthening the disinflation process, reconstitute international reserves, support the recovery and keep the program firmly on track," the Fund says in a statement. It is subject to approval by the board, which will meet in coming weeks.
The multilateral organization estimates that the results are "better than expected" but "it is necessary that efforts continue to be made to improve the quality and equity of fiscal consolidation, refine the monetary and exchange policy frameworks, as well as address bottlenecks for growth."
The Argentine government is carrying out a fiscal adjustment that allowed the first surplus since 2008 in the first quarter of the year, but with thousands of layoffs and the deterioration of salaries and pension payments.
The plan, designed to meet the multilateral organization's demands, has been applauded by the IMF: "Despite inheriting a highly complex economic and social situation, the firm implementation of the authorities' stabilization plan has allowed progress to be made faster than anticipated in the reestablishment of macroeconomic stability and firmly redirect the program," the institution points out.
The statement does not specify the amount of the disbursement, but an IMF spokesperson confirmed to AFP that it corresponds to what was planned in the program, that is, almost US$800 million.
The agreement was announced days after the country, where inflation exceeds 250% year-on-year, experienced its second general strike against the adjustment policies of the government of ultra-liberal President Javier Milei.
Last January, the seventh review was approved, which allowed a disbursement of US$4.7 billion, the first under Milei's mandate.
