The board of directors of the International Monetary Fund (IMF) approved on Friday March 25 an aid program for Argentina of 44 billion dollars with an immediate disbursement of 9.65 billion, the institution announced in a communicated.
The 30-month aid plan granted under the IMF’s “extended credit facility” should enable Argentina to “ strengthen debt sustainability, fight high inflation, increase reserves, close the country’s social gaps “, she announced.
” While an economic and employment recovery is underway, Argentina continues to face exceptional economic and social challenges”said IMF Managing Director Kristalina Georgieva, citing “ depressed per capita income, high levels of poverty, persistently high inflation, heavy debt burden and low external reserves “.
She believes that, in this context, the economic program which has been drawn up by the Argentine government and which is supported by the Fund, “ sets pragmatic and realistic goals and credible policies to strengthen macroeconomic stability “.
A program to be recalibrated because of the war in Ukraine
The Argentinian Congress had given its approval last week to this loan amount. On the other hand, he had not voted on the macroeconomic policies themselves. ” A strong political and social consensus is essential to support the implementation of the reform agenda added Ms. Georgieva.
It recalls that the program approved by the IMF consists in consolidating the budget and supporting growth, which will make it possible to strengthen debt sustainability and control “ persistent and high inflation “. But she also points out the risks exceptionally high for the program as the fallout from the war in Ukraine is already materializing.
“ In this context, early recalibration of the program, including the identification and adoption of appropriate measures, as needed, will be essential to achieve the program objectives. “, she noted.
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(With AFP)