MercoPress, en Español

Montevideo, July 17th 2019 - 20:39 UTC

 

 

IMF expected to release the next US$ 4.5bn disbursement to Argentina in mid July

Saturday, July 6th 2019 - 09:35 UTC
Full article 3 comments
“Argentina’s economic policies are yielding results,” acting IMF chief David Lipton said in a statement, noting that the government achieved all the targets “Argentina’s economic policies are yielding results,” acting IMF chief David Lipton said in a statement, noting that the government achieved all the targets

The International Monetary Fund reached an agreement with Argentina that will allow release of the next US$5.4 billion disbursement under the loan program intended to help stabilize the nation’s economy.

The IMF board must approve the fourth review of the country’s performance under the loan deal signed last year before Buenos Aires will have access to the additional funds. The board meeting is set for July 12.

“Argentina’s economic policies are yielding results,” acting IMF chief David Lipton said in a statement, noting that the government achieved all the targets agreed with the fund including on budget policy and social spending.

“I fully support Argentina’s efforts to bolster confidence, lay the foundation for sustainable growth and protect the most vulnerable.”

While inflation remains high it “is expected to continue to fall in the coming months,” Lipton said. “There are also signs that the economy is improving in the second quarter.”

President Mauricio Macri has faced increasing pressure over the misfiring economy with presidential elections set for October. He was forced to impose austerity measures as authorities struggled to stabilize the currency and rein in inflation to ensure access to IMF funding.

Consumer inflation hit 3.1% in May and has risen more than 19% so far this year, while unemployment closed last year just over 9% and the poverty rate rose to 32%.

Argentina originally secured a US$50 billion financing package from the IMF in June 2018, before returning to the fund to ask for an additional US$6 billion and accelerated disbursements in exchange for tougher conditions.

Christine Lagarde, the recently departed IMF chief, admitted last month that the crisis-lender had “underestimated” the severity of Argentina’s “incredibly complicated” economic challenge.

Top Comments

Disclaimer & comment rules
  • imoyaro

    Awwww, poor Kamerad/Komrade Rique. At least “your country” will still be unable to bully its neighbors no matter who wins. Meanwhile, though, you'll still be on the lam...

    https://panampost.com/mamela-fiallo/2019/07/03/argentina-the-vicious-legacy-of-left-wing-terrorism/

    Jul 07th, 2019 - 10:02 pm +1
  • Enrique Massot

    There can be no doubt now that the IMF is financing Mauricio Macri's presidential election campaign.

    Against its own rules, the IMF has allowed the Argentine government to use loan money to prop the peso during the election campaign, to give an impression of stability bound to explode as soon as the outside help dries up.

    The IMF's record-setting loan to Argentina avoided a clear default a year ago. The government to be elected in October will quickly face debt repayments, which will give the IMF another pressure tool over the future administration.

    Depending on which government gets elected, the IMF may be more or less willing to renegotiate the repayments' schedule -- or not, as it happened in 2001 when the organization denied a standby loan, speeding the default declared at that time.

    It doesn't become too difficult to anticipate the IMF's behaviour in case the Macri - Pichetto ticket wins. It also becomes easy to predict the IMF's greeting of an eventual Fernandez - Fernandez government.

    Jul 06th, 2019 - 04:40 pm 0
  • :o))

    REF: “the next US$ 4.5bn”:

    The Begging bowl is FOREVER empty!

    Jul 06th, 2019 - 04:52 pm 0
Read all comments

Commenting for this story is now closed.
If you have a Facebook account, become a fan and comment on our Facebook Page!