The International Monetary Fund (IMF) and the Argentine authorities reached an agreement after the first revision of the Argentine Economic Reform Program, as an deployment of the Extended Financing Mechanism (EFF). Now, the country may have access to about $ 2 billion (SDR 1.529 billion) upon approval by the IMF executive board.
The program had a strong beginning, supported by continuous implementation of rigorous macroeconomic policies, including a strong fiscal anchor and restrictive monetary posture, the fund points out.
The transition to a more flexible exchange rate regime and the loosening of most foreign exchange controls continued without problems, despite a more challenging external scenario. In addition, the IMF points out that the official exchange rate remained around the midpoint of the band, inflation continued to slow down, economic expansion prospered and poverty fell.
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“Notably, Argentina has returned to access international capital markets earlier than expected,” the institution praises. In May, the Argentine government offered foreign investors due to due dollar subscription in 2030 in auction.
According to the fund, the initiatives should be complemented by additional movements to create a more open, resilient and market -based economy.
The $ 2 billion disbursement is an deployment of the Argentine relief program approved by the Executive Board in April. The agreement, lasting 48 months, includes a total amount of loan of $ 20 billion. The first release of resources – $ 12 billion – occurred immediately after the agreement was formalized in April.
