It is in this context, they explain, that the Government decided to take measures to increase spending to address the situation of vulnerable sectors such as the bonus for retirees who earn the minimum or improvements in social plans and the Food card.
Next month, the Fund’s technicians will evaluate compliance with the three goals included in the recently approved program and, in addition, will carry out a “recalibration” of the same in light of the change in the international context derived from the war in Ukraine.
The memorandum of understanding between Argentina and the IMF commits the country to meet three consistent goals in limiting the fiscal deficit, monetary financing of the Treasury and achieving a target of accumulation of foreign exchange reserves.
Goals
The target fiscal implies that in the first quarter of the year the primary deficit (before interest payments) does not exceed 222,300 million pesos, equivalent to 0.3% of GDP. As of last February, the primary imbalance accumulated 92,982 million pesos (0.1% of GDP), “that is, it should be greater than $129,000 million in March 2022 to exceed the limit of the goal”specify pxq.
Regarding the limit on monetary financing, with data as of March 23, the Central Bank accumulates transitory advances to the Treasury for $122,000 million with which it remains below the goal of $236.8 billion.
The third requirement refers to the accumulation of international reserves that must rise by 1,200 million dollars in relation to the level registered last December. Although the net assets held by the BCRA fell by some 2,400 million dollars since last December, the quarterly objective is exceeded with the financing of 4,400 million dollars that the Fund itself granted at the end of last month.
Calm
Under these conditions, it is anticipated that the country will continue to receive financing from the Fund, a key element to tend to sustain the tranquility that the exchange market has been registering.
In this sense, the rise in the international prices of grains, the (seasonal) income of dollars from the harvest and the revaluation of the currencies of neighboring countries, particularly the Brazilian currency, also play a role – the real went from almost 6 per US currency unit at 4.7-.
As for internal conditions, the latest news on economic activity has been well received in the Casa Rosada media, which, they maintain, ratifies the official forecast of a sustained recovery. INDEC data show that industry had a year-on-year increase of 8.7% in February and construction 8.6%.
After having achieved a favorable understanding for the country, they maintain in official media, the continuity of the economic recovery will allow it to continue fulfilling the goals committed to before the IMF. The next review will be in September, when the technicians of the multilateral organization will evaluate the second quarter of the year.
Source: Ambito
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