Argentina and the International Monetary Fund (IMF) have confirmed a staff level agreement, through which the multilateral organization will disburse $4.7 billion to help the South American nation face upcoming debt maturities. These funds will also be used to support the “strong political efforts” of the Government of Javier Milei.
According to the statement issued on Wednesday, the program agreed upon between Argentina and the IMF “deviated seriously,” highlighting that the goals of the end of September regarding the primary fiscal deficit were not achieved and that, according to preliminary data, the goals at the end of September year were even more unfulfilled. This criticism directly alludes to the Administration of former President Alberto Fernández (2019-2023).
The agreement, which still must be approved by the Executive Board, establishes that the disbursement will amount to almost 4.7 billion dollars, equivalent to 3,500 special drawing rights (SDR). Final approval will be subject to acceptance of the “new goals” presented at the end of January by Argentina.
The IMF also recalls in its text that “the net international reserve objectives were not met, with deviations from the year-end objective of around $15 billion” before December 10, when the government of the libertarian economist began. Javier Milei.
For this reason, the Fund supports “the strong political efforts of the new authorities to restore macroeconomic stability” and thus be able to help Argentina “meet its balance of payments needs.”
