2023-12-13 00:07:00
The International Monetary Fund (IMF) provided support for the first economic measures of the Javier Milei government.
A few minutes following the announcements made by the Minister of Economy, Luis Caputo, the credit organization expressed in a statement: “IMF staff supports the announced measures today by the new Minister of Economy of Argentina, Luis Caputo.”
The advertisements focused on reduction of the structure of the National State, the suspension of public works and a devaluation of the peso from $400 to $800 per dollar, as well as the maintenance of social plans.
“These strong initial actions aim to significantly improve public finances in a way that protects the most vulnerable of society and to strengthen the exchange rate regime. Its decisive application will contribute to stabilizing the economy and laying the foundations for more sustainable growth led by the private sector,” adds the statement signed by Julie KozackDirector of Communications at the IMF.
Survey: 50% expect favorable economic results from Javier Milei’s management
And he adds: “The IMF staff and the new Argentine authorities will work quickly in the coming period. After the serious setbacks (SIC) in economic policy in recent months, This new package of measures constitutes a good basis to continue discussions aimed at redirecting the current program supported by the Fund”.
Support from Kristalina Georgieva
For her part, the director of the organization, Kristalina Georgievaexpressed on his X account (former Twitter):
“I welcome decisive measures announced today by President @JMilei and his economic team to address important economic challenges for Argentina: an important step towards restoring stability and rebuilding the country’s economic potential.”
The 10 emergency measures announced by Luis Caputo
- Employment contracts are not renewed in the State that are valid for less than one year.
- Suspension of the national government guideline for one year.
- Reduction in the number of ministries and secretariats.
- Reduction of discretionary fund shipments to the provinces (ATN).
- Elimination of public works tenders and suspension of the execution of those tendered that have not yet started.
- Reduction of energy and transportation subsidies.
- Freezing of Enhance Work in values 2023.
- Official dollar at $800 with an increase in the PAIS Tax on imports and withholdings on non-agricultural exports.
- Replacement of SIRAs with an import system without prior authorization.
- Doubling the amount of the Universal Child Allowance (AUH) and a 50% increase for the Alimentar card.
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