Posted in: Last updated:
Washington (AFP) – The Board of Directors of the International Monetary Fund on Friday approved the disbursement of a new tranche of $3.8 billion of a loan to Argentina, according to a statement published Friday.
The decision, already approved by the fund’s technical staff in September, was made at the end of the second study of a broad financial assistance program totaling $44 billion over thirty months.
By paying this new tranche, Buenos Aires will receive a total of approximately $17.5 billion to promote economic stability and sustainable growth for the country.
“In response to the market turmoil in mid-2022, the new Argentine economic team has taken decisive corrective measures that begin to restore confidence and policy credibility,” IMF Managing Director Kristalina Georgieva said in the statement.
“Achieving the primary budget deficit targets set at 2.5 percent of GDP in 2022 and 1.9 percent of GDP in 2023 is necessary to adjust import growth, accumulate reserves, enhance debt sustainability, and reduce dependence on central bank financing of the deficit,” it added. .
The IMF further emphasized that “this will require more tight spending controls and more efficient support and social spending.”
The agreement with the International Monetary Fund, signed last March, provides for a series of measures aimed at controlling chronic inflation in the country (50.9 percent in 2021 and 71 percent on an annual basis in July 2022) and reducing the public deficit to rebalance. in 2025.
This agreement is the thirteenth concluded by the International Monetary Fund with Argentina since the return of democracy to the country in 1983.
© 2022 AFP
