2023-11-26 22:14:26
Kristalina Georgieva, for her part, indicated on the same network that this exchange had allowed them to address “the important challenges of the Argentine economy and the necessary decisive political actions”.
143% inflation this year
Latin America’s third-largest economy is struggling to repay a colossal loan of $44 billion, taken out in 2018 from the IMF, due to record-low foreign currency reserves. For a dozen years, double-digit inflation has been the norm in Argentina, but it has skidded this year to 143% over twelve months, a record for 32 years, in parallel with a currency, the peso, in constant depreciation.
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The outgoing administration of Peronist Alberto Fernández renegotiated the loan contracted with the IMF, but the recession that accompanied the Covid-19 pandemic and a severe drought this year hit the Argentine economy, making it difficult to achieve the goals set with the institution.
The IMF still has to pay 3.3 billion this year
“I spoke to her (Kristalina Georgieva, editor’s note) regarding the different aspects of our budgetary adjustment plan and our monetary program. The Fund has been cooperative in finding the structural solutions that Argentina needs,” said Javier Milei.
During his campaign, the far-right president-elect promised a drastic fiscal adjustment, up to the equivalent of 15% of Argentina’s GDP, as part of a program that includes the closure of the Central Bank and dollarization of the country’s economy. “The IMF is committed to supporting efforts to sustainably reduce inflation, improve public finances and promote growth driven by the private sector,” its Managing Director further reported. The institution must still pay $3.3 billion to Argentina before the end of the year as part of the aid plan.
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