Top grades for Macri and his reform policies from IMF's Lagarde

Monday, July 23rd 2018 - 07:15 UTC

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Argentine authorities are implementing a decisive reform plan that has the support of the international community and is backed by the IMF, stated Lagarde

Christine Lagarde, Managing Director of the International Monetary Fund, met with Argentina’s President Mauricio Macri, Finance Minister Nicolas Dujovne and Central Bank Governor Luis Caputo in the context of the Group of 20 Finance Ministers and Central Bank Governors meeting in Buenos Aires over the weekend.

In a brief support statement Ms Lagarde said she met president Mauricio Macri, Finance Minister Nicolas Dujovne and Central Bank Governor Luis Caputo, an opportunity to discuss recent economic developments in the world and in Argentina and take stock of the authorities’ economic reform plans.

“The Argentine authorities are implementing a decisive reform plan that has the support of the international community and is backed by the IMF, through a Stand-By Arrangement. This plan aims to strengthen Argentina’s economy and bolster confidence by addressing long standing vulnerabilities, protect the most vulnerable, improve gender equity and lay the foundation for inclusive and sustainable growth going forward.

“The government has shown strong commitment to implement their plan so far. The Central Bank of Argentina has put in place measures that helped reduce financial volatility and improve transparency, progress is ongoing regarding the fiscal measures for next year and social spending remains above the targets set by the authorities.

“These and other measures will help economic performance going forward. We expect growth to stabilize in the last quarter of 2018 and see a gradual recovery in 2019 and 2020, as confidence grows and the cost of capital falls, along with inflation, while exports pick up.

“Steadfast implementation of the authorities’ plan will stabilize the economy, help lower inflation, improve confidence and lay the foundation for sustainable and inclusive growth.”

Categories: Economy, Politics, Argentina, International.

Tags: Argentina IMF, Argentine Central Bank, Christine Lagarde, G20 meeting in Buenos Aires, Luis Caputo, Mauricio Macri, Nicolas Dujovne.

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Enrique Massot
Christina Lagarde will remain in memory as one of Mauricio Macri's last cheerleaders at a time when supporters are scurrying away as fast as they can.

The austerity plan, “has the support of the international community and is backed by the IMF,“ according to Lagarde. “We expect growth to stabilize in the last quarter of 2018 and see a gradual recovery in 2019 and 2020.”

Give me a break.

Is there some basis to believe that Argentina can recover when nothing will change in the economic direction implemented since Dec. 2015?

Let’s see.

Public debt is now reaching 330 billion US dollars, taking the debt-to-GDP ratio to 80 per cent up from 57 per cent in early 2018. The country has not increased its payment capacity.

To lower the fiscal deficit as required by the IMF, Macri is cancelling public works all over the country. This gave Macri hopes to keep a semblance of normalcy in a country where the productive machine is being quickly unmercifully dismantled.

The IMF intervention is nothing but an attempt to keep the international financial business' high gains going -- for some more time.
Jul 23rd, 2018 - 06:46 pm -1

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