The announcement is made shortly after Sergio Massa’s visit to the United States, where he received a boost from the Director, Kristalina Georgieva, and in the run-up to the meeting he will hold today with President Alberto Fernández.
“Recent and decisive policy measures aimed at correcting previous setbacks are helping to restore confidence and strengthen macroeconomic stability, including by rebuilding international reserves. The staff of the IMF and the Argentine authorities agreed that the objectives established in the approval of the agreement will remain unchanged until 2023. Determined policy implementation remains essential to consolidate macroeconomic stability and begin to address Argentina’s entrenched challenges, particularly high and persistent inflation,” the statement added.
Funds for US$4,000 million
It should be remembered that said agreement -which was closed informally during Minister Sergio Massa’s visit to the United States last week- is the step prior to the approval of the IMF’s executive board, something that will occur in the coming weeks and which would opt for the disbursement of some US$4,000 million.
Apart from the bureaucratic issue, which is not minor, the agency’s decision represents a boost for the economic plan that Minister Massa has been carrying out. The Government indicates that this entire ecosystem of decisions seeks “stabilize” the economy and points in two clear directions: on the one hand, the accumulation of reserves in the BCRA. On the other hand, the political agreement linked to the next 2023 Budget, an instrument that the IMF especially values.
The relevant fact is that both the IMF’s technical staff and the Argentine authorities ratified the objectives established last year in the last few hours and are betting that there will be no changes in the short term. Of course, apart from these central points, the government (and the IMF) are concerned about high inflation. In the body they understand -and they discussed it with Massa himself a few days ago during his visit to Washington- that this commitment not to make changes in the program with the IMF constitutes the quintessence of the agreement and should contribute to a drop in speculation.
In the statement, the IMF made an observation about the reserve goal that is still far from what was scheduled (based on an exponential growth in imports), although pondering that Massa’s plan managed to curb the volatility in the stock market for Argentine debt. and supporting the decisions made so far.
Tools
It is also worth mentioning some aspects that Massa himself brought to the United States and that the IMF seems to have made part of its agenda, which could venture that, in a future negotiation, Argentina has some additional tools to gain margins of action against the agency. .
In her statement in recent days, Georgieva herself recognized the most complicated context, the inflationary pressures generated by the war, the need to consider those sectors of society that are most vulnerable and an accompaniment to the vector outlined in the budget to discuss those items of public spending that, through exemptions, are addressed to companies and not to families.
Source: Ambito
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