According to the new understanding, the administration headed by the president Javier Milei pledged to achieve a primary fiscal surplus of 2% of GDP this year.
The Government finally reached an agreement with the IMF on the latest review of the debt program, which will allow the country to receive a disbursement of US$4.7 billion, when the board approves it.
Although in a press conference, Caputo together with the head of the Central Bank, Santiago Bausiliexplained that the Government is not seeking to take on new debt with the organization, he did say that the mission that arrived in Buenos Aires left open the possibility of negotiating new loans.
The advance agreement with the IMF earlier today was well received by the market. The dollar bonds they shot up to almost 6% this Wednesday, January 10 and risk country wrote down his biggest daily drop in seven weeks, to break through 2,000 points again.
Luis Caputo and the chief of staff, Nicolas Posse, received the technicians at Casa Rosada. In addition to Luis Cubeddu, deputy director of the Department of the Western Hemisphere, and Ashvin Ahuja, Head of the Mission, participated for the multilateral organization Ben KelmansonIMF representative in Argentina.
According to the new understanding, the administration headed by the president Javier Milei pledged to achieve a primary fiscal surplus of 2% of GDP this year.
Revenues are expected to be temporarily supported by higher trade-related taxes as well as gains from the normalization of agricultural production.
Meanwhile, spending rationalization will be supported by reductions in administrative costs, energy and transportation subsidies, discretionary transfers to provinces and state-owned enterprises, and lower-priority infrastructure spending.
Initial measures will be complemented by efforts over time to safeguard a general fiscal balance, through high-quality improvements in the efficiency of tax and spending systems.
Source: Ambito
