Wed. Jul 17th, 2019

The IMF approves a new disbursement of 5,400 million dollars to Argentina



The Executive Board of the International Monetary Fund (IMF) approved Friday a new disbursement of 5,400 million dollars to Argentina in the framework of the loan subscribed in 2018 of 56,300 million dollars for three years.

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The agreement between the IMF and the Government of Argentina was announced a week ago, but there was a lack of approval from the Board of Executive Directors that was awaiting the conclusion of the fourth review of its financial assistance program.

"The Argentine authorities continue to show a strong commitment to their economic policy program, and have met all the relevant targets within the framework of the IMF-backed plan," the agency's interim managing director, David Lipton, said in a statement.

"Although," he added, "it has taken time, the efforts made in terms of policies are beginning to bear fruit."

Lipton also stressed that "the Argentine government has constantly demonstrated its commitment to fiscal discipline and has far exceeded the fiscal targets set for March and June."

With the approval of these 5,400 million dollars, the Fund has already disbursed in Argentina 44,100 million dollars of the loan subscribed in 2018.

The previous revision, which culminated with the authorization by the IMF Board to disburse 10.870 million dollars, was last February.

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 Argentine Finance Minister, Nicolás Dujovne, announced this Friday at a press conference that in the first half of the year the country achieved a primary surplus of 30,221 million pesos (707.7 million dollars), equivalent to 0.1% of the PBI

Despite the good omens of the IMF and Dujovne, the Moody's agency reduced Friday's rating outlook from stable to negative, but kept the note in B2 for the long-term issue in local and foreign currency.

(tagsToTranslate) IMF (t) approves (t) disbursement (t) million (t) Argentina



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