He International Monetary Fund (IMF) reported Thursday that The Board of Directors approved The first review of the extended facilities program agreed with Argentina. In this way, the statement released in Washington confirms that the country will have access to an immediate disbursement for around 2,000 million dollars.
The document indicates that “The solid policy implementation has supported a fluid transition to a more flexible exchange regime, with a decrease in decrease and continuous economic growth. ”
It also emphasizes that “The executive directory welcomed with satisfaction the commitments of the authorities to safeguard the fiscal anchor, improve the monetary framework, rebuild reserves and promote reforms that foster growth.”
Fund information realizes that “Despite a more complex world context, the executive directory evaluated that the implementation of the program has been solid, which reflects properly restrictive policies.”
The statement recognizes that “Although the quantitative goal of mid -June was not reached for the accumulation of net international reserves (RIN), other key performance criteria and indicative objectives were fulfilled, and corrective measures were implemented to bring reservations to the goal.”
After the Board debate about Argentina, Kristalina Georgieva, General Director of the Agency declared that “the new phase of the stabilization program of Argentina, backed by the expanded mechanism of the Fund, has had A solid beginningdespite a complex external environment. “
He added that “Properly restrictive macroeconomic policies have facilitated a fluid transition to a more flexible exchange regime and the flexibility of most restrictions and exchange controls. Disinflation has resumed, the economy has continued its expansion and poverty has continued to decrease. ”
The IMF holder also stressed that Argentina has recovered access to international capital markets earlier than expectedalthough interest rates differentials remain high.
For Georgieva, “The zero general deficit objective remains the fundamental pillar of economic policy. The discipline and spending controls guarantee compliance with the objective of the authorities of a primary surplus of 1.6 % of GDP for this year, while offering margin for adequate social assistance to the most vulnerable.
In what was interpreted as a support for the government’s opposition to expand the expenditures, the director said that “Efforts are still important to guarantee the complete financing of any new fiscal or spending initiative”.
He also considered that restrictive monetary conditions should continue to promote disinflation and the ongoing remuneration process. ´ ”Improvements to the monetary framework should continue to optimize the management of liquidity and mitigate the volatility of interest rates. Meanwhile, greater clarity with respect to the medium -term monetary regime remains essential to further consolidate disinflation”.
Giorgieva also stressed that “Exchange flexibility should be preserved, while stressing efforts to rebuild reserves are maintained. This is essential for Argentina to better manage shocks and lastly access international capital markets in more favorable conditions.”
He also stated that Continuous efforts should be intensified to deregulate the economy, reduce entry barriers and improve the governance and efficiency of the state. Greater attention should be paid
Among the reforms, he pointed out the need to: strengthen the labor market to promote formal employment and facilitate mobility; Promote direct foreign investment through the consistent and equitable implementation of the incentive program for large investments; and strengthen commercial opening, including a greater reduction in export -distorting taxes, as allowed by tax conditions.
Finally, Giorgieva said that “Given the even high risks, the agile formulation of policies and contingency planning remain essential to protect the objectives of the program. Continuous preparation and clear communication of policies, as well as well -focused social support, will be key to expanding social and political consensus around the program.”
The decision of Board It is doubly timely. On the one hand, because it will add resources to the reserves of the Central Bank in times of tension in the change market.
This Thursday, the price Retailer did not stop his upward climb and touched $ 1,380 for sale at Banco Nación, $ 55 above the previous closure, for accumulate a jump of 14%throughout July. For its part, the wholesaler was $ 1,355 Despite the high interest rates in pesos.
On the other hand, the directors of the Fund adopted the decision to approve assistance to Argentina just before the beginning of the recess for summer holidays In the northern hemisphere, thus avoiding dilating a disbursement of key resources in the current Argentine economic situation.
Source: Ambito
