MercoPress. South Atlantic News Agency

Argentina's economic reform, an example to the world

Argentina deserves the IMF's support because it is making real progress, Bessent noted

International Monetary Fund (IMF) Managing Director Kristalina Georgieva expressed once again her support for Argentina's economic policies following an encounter with Argentine Economy Minister Luis Toto Caputo during the IMF and World Bank Spring Meetings in Washington.

“Excellent meeting where we shared the progress of the economic program, especially in this difficult global context. Thank you very much Kristalina Georgieva,” Caputo posted on X.

The discussions focused on the progress of the South American country's Extended Facilities Program (EFF), which began on April 11 and has shown positive market reactions.

Georgieva and Caputo “shared the vision on the positive market reaction to the implementation of the new program, confirming its soundness, even in a more challenging global context given the high volatility in the markets,” the Argentine Economy Ministry also said in a statement.

“In addition, in this first meeting after the program approval, there was recognition by the IMF authorities to the entire economic team, and the importance of continuing to work together constructively was highlighted,” the communiqué added.

The IMF approved a new EFF, providing Argentina with US$ 20 billion in financing, including a $12 billion disbursement. Both Georgieva and Caputo acknowledged the program's robustness despite global market volatility.

Additionally, US Treasury Secretary Scott Bessent endorsed Argentina’s economic reforms under President Javier Milei, calling the country a strong example deserving IMF support. Bessent highlighted Argentina’s progress in meeting financial benchmarks and stressed the IMF’s role in promoting economic stability through responsible lending, while noting that the global credit agency should hold countries accountable for implementing reforms and may refuse lending to those that fail to comply.

“Argentina is a good example. I was in Argentina earlier this month to demonstrate US support for the IMF's efforts to help the country restructure financially. Argentina deserves the IMF's support because it is making real progress in meeting financial benchmarks,” Bessent said.

“When done responsibly, IMF lending is central to its contribution to the global economy: when markets fail, the IMF steps in and provides resources. In return, countries implement economic reforms to address their balance of payments problems and boost economic growth. The reforms undertaken during these programs are some of the IMF's most important contributions to a strong, sustainable, and balanced global economy,” he added during an event organized by the Institute of International Finance (IIF).

“But not all countries deserve it. The IMF must hold countries accountable for implementing economic reforms. And sometimes the IMF has to say no. The organization has no obligation to lend. The organization has no obligation to lend to countries that do not implement reforms. Economic stability and growth should be the indicators of the IMF's success, not the amount of money the institution lends,” he also pointed out.