He International Monetary Fund (IMF) This Thursday he urged the Argentine president, Javier Mileyto work to gain social and political support that allows it to guarantee the durability of the economic reforms it is implementing.
“It remains important to work pragmatically to generate social and political support to help ensure the durability and effectiveness of the reforms”pointed out the IMF spokesperson, Julie Kozackat a press conference in Washington.
Although the progress made by the president so far “has been impressive,” Kozack said, it is necessary for the president to achieve support that guarantees the viability of the changes that are being carried out.
Kozack denied this Thursday that there are negotiations for a new debt refinancing agreement with Argentina and stated that work is currently being done on the current program, which will be valid until the end of this year.
“At this time, it would be premature to discuss the modalities of a possible future program”said.
The IMF team and the Argentine authorities “are participating in active discussions in the context of the current IMF-supported program,” said Kozack, who assured that the Fund’s objective remains “to support the authority’s efforts to restore macroeconomic stability.” and lay the foundations for prosperous and inclusive growth in Argentina.
The Executive of Alberto Fernandez (2019-2023) signed an agreement with the IMF in March 2022 to refinance the debt contracted in 2018 during the mandate of conservative Mauricio Macri (2015-2019) for about $45 billion that included ten quarterly reviews.
The IMF board approved on February 1 to extend the agreement with Argentina until December 31, 2024 and to recalibrate the disbursements planned within the resource allocation of the current program.
Last January, the seventh review was agreed upon, which allowed the disbursement of 4.7 billion dollars, the first under the mandate of President Javier Milei.
Since assuming the Presidency, the IMF has only had praise for the politician, leader of the far-right party Freedom Advances.
Kozack highlighted, for example, that in January and February a fiscal surplus was recorded for the first time in more than a decade. “International reserves are being rebuilt, inflation is falling faster than expected and market indicators such as the exchange rate gap and sovereign spreads continue to improve,” he added.
Since “the path to stabilization is never easy and requires strong policy implementation,” it will be “important to continue improving the quality of fiscal adjustment and worthwhile monetary policy that we will also need to adapt during this transition.” EFE (I)
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