August 5, 2020

The IMF agrees the disbursement of 5,400 million dollars of financial assistance to Argentina



The International Monetary Fund (IMF) announced on Friday an agreement with the Government of Argentina for the disbursement of 5,400 million dollars after the fourth review of its financial assistance program, although the approval of the Executive Board of the agency is still pending.

"I am pleased to announce that the technical staff of the IMF and the Argentine authorities reached an agreement on the fourth review of the economic program, subject to the approval of the Board of Executive Directors, Argentina would have access to 5,400 million dollars," said the acting managing director. of the IMF, David Lipton, in a statement.

Lipton, who holds the position provisionally left by Christine Lagarde this week after accepting her nomination to the Presidency of the European Central Bank (ECB), praised the Argentine authorities "for their continued efforts and the firm implementation of its economic policy program."

"The authorities have completed all their fiscal, monetary and social spending objectives within the framework of the program supported by the IMF in the context of this review," he said.

The interim managing director of the IMF considered that the economic policies of the Government of Mauricio Macri "are paying off" and explained that the financial markets stabilized in May and June.

Likewise, it projected that inflation, although it remains at high levels, "will continue to fall in the coming months," and noted that Argentina's fiscal and external position "continues to improve."

"I fully support Argentina's efforts to strengthen confidence, lay the foundations for sustainable growth and protect the most vulnerable," he said.

The agreement reached between the technicians of the IMF and the Argentine authorities will be reviewed by the Board of Executive Directors of the fund, whose members include Lipton, next July 12.

An IMF delegation traveled to Buenos Aires in May to carry out the fourth revision of the economic plan signed with Argentina in 2018, which supports a loan of 56.3 billion dollars for three years.

The meetings continued in Washington and, subsequently, the agreement announced today was reached.

The loan is of the type of right of rotation ("stand-by"), which requires a strong intervention of the multilateral institution in national economic policies.

The last revision, which culminated with the authorization by the IMF Board to disburse 10.870 million dollars, was last February, after an agenda that included meetings with opposition leaders, unions and businessmen.

(tagsToTranslate) IMF (t) disbursement (t) financial assistance (t) (t) Argentina



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