The International Monetary Fund’s Board of Directors gave its approval for Argentina to receive a new loan tranche worth $3.8 billion.
It is notable that the technical team of the fund reached its decision last month, at the conclusion of the second examination of a comprehensive financial aid programme that will cost $44 billion over the course of 30 months.
Buenos Aires will receive a total of about $17 by paying this new payment.
5 billion to encourage the nation’s sustained economic growth.
The IMF Managing Director, Kristalina Georgieva, said in a statement, “In response to the market upheaval in mid-2022, the new Argentine economic team has taken substantial corrective actions that begin to restore confidence and policy credibility.”
Reaching the primary budget deficit goals of 2.5% of GDP in 2022 and 1.5% in 2023.
To regulate import growth, build reserves, improve debt sustainability, and lessen reliance on central bank financing of the deficit, 9 percent of GDP will be required in 2023, the author continued. “.
The International Monetary Fund added that “this will call for tighter budgetary restrictions and more effective social and assistance spending.
“The deal with the International Monetary Fund, inked in March, calls for a number of steps to reduce the nation’s chronic inflation (50. 9 percent in 2021 and 71 percent on an annual basis in July 2022 and reducing the public deficit to rebalance in 2025).
Since the country’s return to democracy in 1983, the International Monetary Fund has entered into 13 agreements with Argentina.
Ukraine’s request for an additional $1. 3 billion in emergency assistance to support the nation’s economy was granted by the International Monetary Fund.
The financing, which will come from a recently launched emergency loan programme, was approved by the fund.
According to him, these monies will assist Ukraine in addressing its immediate balance of payments needs, notably those brought on by the loss of grain export revenue.
The fund stated that the size and ferocity of Russia’s war on Ukraine, which started more than seven months ago, “has inflicted enormous human suffering and enormous economic harm.”
He noted that the funding requirements are still quite high and predicted that the Ukrainian economy will fall by 35% in 2022. The Fund also applauded the Ukrainian government for preserving financial stability under extremely challenging conditions.
Argentina receives a $3.8 billion loan tranche from the IMF.
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