The International Monetary Fund said on Monday that the policies implemented in Argentina by the government of President Javier Milei They have exceeded expectations and that is why an agreement has been reached with the authorities of the South American nation to continue with measures that lead to economic recovery.
The IMF statement comes after a visit by the multilateral organization’s technical staff to review an existing agreement. Argentina is going through a strong slowdown in its economy and could end the year with a recession of around 2.8%, added to one of the highest inflations in the world of 211.4% in 2023.
The announced agreement, however, must still be approved by the Fund’s executive board and only then would Argentina have access to money disbursements, something that is expected to happen in the coming weeks, the organization said. It is the eighth review of the country’s extended facilities program for 44 billion dollars carried out by the Argentine government and IMF technicians.
The entity did not report what measures were agreed upon with the Milei government, which since it took office in December began to implement a state adjustment and deregulation plan.
“IMF technical staff and Argentine authorities reached an understanding on policies to continue strengthening the disinflation process, rebuild international reserves, support the recovery, and keep the program firmly on track,” the IMF said in its statement, in which which assured that the results were “better than expected” and that all the performance criteria for the first quarter of the year were met beyond expectations.
Milei, who took office last December, promised to end inflation, eliminate the fiscal deficit and put the central bank’s accounts in order, among other things, by implementing a series of tough economic measures.
Milei’s plan “has resulted in faster-than-expected progress in restoring macroeconomic stability and putting the (IMF) program firmly back on track,” the agency said.
Authorities have agreed that Argentina will continue working to achieve fiscal balance without net financing from the central bank, the IMF said. Meanwhile, exchange rate policy will become more flexible as conditions allow, among other points of the agreement.
[Con información de Reuters y AP]
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