Washington (awp/afp) – The board of directors of the International Monetary Fund (IMF) on Friday approved a $44 billion aid program for Argentina with an immediate disbursement of $9.65 billion, announced the institution in a press release.
The 30-month aid plan, granted under the IMF’s “extended credit facility”, should enable Argentina to “strengthen debt sustainability, combat high inflation, to increase the reserves, to fill the social gaps of the country”, she announced.
“While an economic and employment recovery is underway, Argentina continues to face exceptional economic and social challenges,” IMF Managing Director Kristalina Georgieva said, citing “a depressed per capita income, high levels of poverty, persistently high inflation, a heavy debt burden and low external reserves”.
She believes that, in this context, the economic program which has been drawn up by the Argentine government and which is supported by the Fund, “sets pragmatic and realistic objectives, as well as credible policies to strengthen macroeconomic stability”.
The Argentine Congress had given its approval last week to this amount of loan. On the other hand, he had not voted on the macroeconomic policies themselves.
“A strong political and social consensus is essential to support the implementation of the reform programme”, Ms Georgieva added.
She recalls that the program approved by the IMF consists in cleaning up the budget and supporting growth, which will make it possible to strengthen the viability of the debt and control “persistent and high inflation”.
But it also notes the “exceptionally high” risks to the program as the fallout from the war in Ukraine is already materializing.
“In this context, early recalibration of the program, including the identification and adoption of appropriate measures, as needed, will be essential to achieve the program objectives,” she noted.
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