In a statement released on Friday, the IMF Board of Directors said that it had approved the distribution of a new tranche from a $44 billion loan to Argentina, totaling $3. 8 billion, to Buenos Aires.
The choice was determined at the conclusion of the second examination of a comprehensive programme of financial assistance totaling $44 billion over thirty months, and was authorised by the technical staff of the fund in September.
Buenos Aires will receive almost $17. 5 billion from the payment of this new tranche, which will be used to support the nation’s economic stability and sustainable growth.
IMF Managing Director Kristalina Georgieva said in a statement that in response to the market upheaval in mid-2022, the new Argentine economic team had implemented “decisive corrective actions that begin to restore trust and policy credibility.”
Achieving the primary budget deficit goals, which were set at 2.
To control the growth of imports, build reserves, improve debt sustainability, and lessen reliance on the central bank’s financing of the deficit, it will be essential to spend 5% of GDP in 2022 and 1.9% of GDP in 2023.
The International Monetary Fund added that “this will call for tighter budgetary restrictions and more effective social and assistance spending.
“The agreement with the International Monetary Fund, reached in March of last year, calls for a number of actions to manage the chronic inflation in the nation—50.9% in 2021 and 71 percent annually in July 2022—and to reduce the public deficit so that the country rebalances in 2025.
Since 1983, there have been thirteen IMF agreements with Argentina.
Author: AFP.
Argentina receives a payment of $3.8 billion from the International Monetary Fund.
About Author
