IMF approves review of loan program for Argentina and releases US$4.7 billion

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According to the IMF, the release of credit allows support for the government’s efforts to reestablish the macroeconomic situation. Fundo warned that the situation is challenging. The president of Argentina, Javier Milei, during a speech at the Davos Forum this Wednesday (17) Gian Ehrenzeller/Keystone via AP The International Monetary Fund (IMF) approved, this Wednesday (31) a review of the US$ loan program 44 billion to Argentina, allowing the release of US$4.7 billion (R$23.3 billion). The immediate release of around US$4.7 billion allows it to “support the authorities’ clear political efforts to re-establish macroeconomic stability”, the IMF said in a statement. Since taking office less than two months ago, Milei has devalued the peso by 50% and started a price liberalization process. The Argentine president also intends to modify hundreds of norms and laws to try to reverse a crisis that keeps more than 45% of Argentines in poverty, with annual inflation of 211% in 2023. The agreement with the IMF represents significant support for Milei, precisely as Congress debates a controversial package of ultra-liberal reforms. “The new administration is taking bold steps to restore macroeconomic stability,” said IMF Managing Director Kristalina Georgieva. The IMF also said that Argentina is establishing a plan with a strong fiscal anchor, in addition to policies to reduce inflation and rebuild reserves. On the other hand, the Monetary Fund warned that the path to stabilization will be challenging. The council’s approval of the seventh review of the credit agreement with Argentina increases the amount granted to the country to around US$40.6 billion (R$201 billion), as part of a US$44 billion aid program ( R$218 billion). Argentina is facing a crisis with a shortage of currency, high debt in a context of practically no access to international credit markets. In updating the World Economic Outlook, the IMF estimated on Tuesday (30) that the country’s economic situation will be much worse than expected this year. In October, the financial institution predicted growth of 2.8% for the Argentine economy in 2024, but now projects a contraction of 2.8%. Argentina’s Javier Milei faces 1st big test in Congress with vote on ‘ómnibus’ bill VIDEOS: Economy news

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