MercoPress. South Atlantic News Agency

IMF Board approves US$2 bn disbursement to Argentina

The disbursement was approved after Buenos Aires implemented “corrective measures” to bring reserves closer to the target

The International Monetary Fund (IMF) has approved the first review of its agreement with Argentina, authorizing a disbursement of US$2 billion. The decision comes days after the IMF projected a 5.5% growth for the country.

The IMF's Executive Board praised Argentina's “solid” implementation of its economic program, particularly its achievement of fiscal and monetary targets. However, the agency noted that the target for net reserve accumulation was not met. However, it approved the disbursement after the government implemented “corrective measures” to bring reserves closer to the target.

The US$2 billion is expected to provide crucial support to Argentina's Central Bank (BCRA) reserves and help the government meet upcoming debt payments. It also gives the administration political and economic breathing room amid a deep recession and exchange rate pressures.

The IMF stated that it will continue to monitor Argentina's progress on targets for reserves, exchange rates, and fiscal sustainability in the coming months. The approval is seen as an “important early milestone in the program, which seeks to further strengthen public finances, reduce inflation, rebuild reserves, and lay the foundations for more solid and sustainable growth led by the private sector.”

“Despite a more challenging global environment, the Executive Board assessed that program implementation has been solid, reflecting appropriately restrictive policies,” it added.