MercoPress. South Atlantic News Agency

Full IMF support for Argentina.

International Monetary Fund openly supported the package of economic measures announced last Friday evening by president Fernando De la Rúa to bolster the Argentine economy and ease fears among foreign investors holding Argentine bonds.

In a national broadcast, president De la Rúa underlined that Argentina will honor all its debts, further advance deregulations in the health and social security systems, and anticipated tax cuts as the economy begins to recover.

Mr. De la Rúa also indicated that a political understanding with Congress and provincial governors to balance the budget was in the making and further measures to overcome the almost two years long Argentine recession.

Argentine president also confirmed his embattled Economy Minister after days of rumors of his possible replacement. "The commitment of this president, its Minister of Economy José Machinea and whole cabinet with fiscal solvency stands as strong as ever", emphasized President De la Rúa.The speech had a positive reaction from Argentine business and in Washington IMF announced a contingency loan of ten billion US dollars to reinforce the Argentine economic program and provide an additional thrust to its current sustainable long term growth policies. "This is proof of Argentina's commitment to policies that have been so successful for over a decade", said an official IMF release.

Argentina had to pay record risk premium rates this past week, following concerns that the slow Argentine recovery could anticipate trouble tapping international money markets, particularly next year when the country needs to refinance 19 billion US dollars of foreign debt.

A sounder local political atmosphere plus international support to Argentina's fiscal solvency commitment is expected to ease volatility in emerging markets.