In 2022, the IMF and the Argentine government agreed on a $44 billion (R$237.5 billion, at current exchange rates) credit program for the South American country over 30 months in exchange for increasing its international reserves and reducing its cash reserves. The fiscal deficit from 3% of GDP in 2021 to 2.5% in 2022, 1.9% in 2023, and 0.9% in 2024.
With the approval of the eighth review, Argentina has already received $41.4 billion (R$223 billion, at current prices) in total.
The credit program “is being steadily implemented, and all quantitative performance criteria have been met with a margin by the end of March 2024,” the financial institution added in the note.
But he warned: “To maintain strong progress, it is necessary to improve the quality of fiscal adjustment, initiate steps towards improving the monetary and exchange rate policy framework and implement the structural agenda.”
The Fund insisted that Liberal President Javier Miley's government must strive to “support the most vulnerable groups, expand political support and ensure flexibility in policy formulation.”
In addition, the Board approved “exemptions for noncompliance with new currency restrictions and cross-currency practices in the context of certain easing of dividend payment restrictions.”
