The International Monetary Fund praises Miley's government and agrees to disburse a new payment to Argentina

The International Monetary Fund praises Miley's government and agrees to disburse a new payment to Argentina
Javier Miley: Argentina has improved its economic indicators as the new government implements a new policy in the country| Photo: EFE/Juan Ignacio Rocurone

The Executive Board of the International Monetary Fund approved on Thursday (13) the eighth review of the agreement with Argentina, which allows for the immediate disbursement of approximately 800 million US dollars to the country (about 4.2 billion Brazilian reais).

The financial authority said in a statement that this disbursement “will support the authorities’ efforts to restore stability and strengthen Argentina’s external capacity.”

The total disbursements under the Fund's agreement with Argentina amount to approximately 41.4 billion US dollars (222 billion Brazilian reals).

The IMF confirmed that upon completion of the review, “the Executive Board considered that the program is firmly on track, with all quantitative performance criteria met by the end of March 2024 within the margins.”

The entity also approved non-compliance waivers for new exchange rate restrictions and various exchange rate practices in the context of some easing of restrictions on dividend payments.

To maintain strong progress, according to the IMF, “it is necessary to improve the quality of fiscal adjustment, initiate measures to improve the structure of monetary and exchange rate policy, and implement the structural agenda.”

Furthermore, the organization called on the government of Javier Miley to continue “efforts to support the most vulnerable groups, expand political support, and ensure flexibility in policy formulation.”

In March 2022, the then Peronist government of Alberto Fernández (2019-2023) signed an agreement with the IMF to refinance a loan worth approximately US$45 billion (R$241 billion) that the authority had granted to Argentina in 2018, during Mauricio Macri's presidential term. Term (2015-2019).

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The agreement includes quarterly reviews, like those agreed now, on the level of compliance with required fiscal discipline targets, the accumulation of cash reserves, and restrictions on cash issuance.

Achieving these goals and approving each review depends on the organization approving new payments to Argentina. The country uses the resources to pay off its debts with the same entity, which amounted to 40.8 billion US dollars at the end of 2023.

Argentine Economy Minister Luis Caputo announced on Tuesday that he would negotiate a new program with the International Monetary Fund after the organization's eighth review.

In May, the International Monetary Fund confirmed in a statement that Argentina had reached this eighth assessment through a “stabilization plan” through which it was able to achieve its first quarterly fiscal surplus in 16 years, a rapid decline in inflation and a strong reduction in sovereign risks. (with EFE agency)

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