ZCZC
BCN-04
IMF-ARGENTINA-LOANS
IMF reaches agreement with Argentina that will release $5.4 bn loan
tranche
WASHINGTON, July 6, 2019 (BSS/AFP) – The International Monetary Fund on
Friday reached an agreement with Argentina that will allow release of the
next $5.4 billion disbursement under the loan program intended to help
stabilize the South American nation’s economy.
The IMF board must approve the fourth review of the country’s performance
under the loan deal signed last year before Buenos Aires will have access to
the additional funds. The board meeting is set for July 12.
“Argentina’s economic policies are yielding results,” acting IMF chief
David Lipton said in a statement, noting that the government achieved all the
targets agreed with the fund including on budget policy and social spending.
“I fully support Argentina’s efforts to bolster confidence, lay the
foundation for sustainable growth and protect the most vulnerable.”
While inflation remains high it “is expected to continue to fall in the
coming months,” Lipton said. “There are also signs that the economy is
improving in the second quarter.”
President Mauricio Macri has faced increasing pressure over the misfiring
economy with presidential elections set for October.
He was forced to impose austerity measures as authorities struggled to
stabilize the currency and rein in inflation to ensure access to IMF funding.
Consumer inflation hit 3.1 percent in May and has risen more than 19
percent so far this year, while unemployment closed last year just over nine
percent and the poverty rate rose to 32 percent.
Argentina originally secured a $50 billion financing package from the IMF
in June 2018, before returning to the fund to ask for an additional $6
billion and accelerated disbursements in exchange for tougher conditions.
Christine Lagarde, the recently departed IMF chief, admitted last month
that the crisis-lender had “underestimated” the severity of Argentina’s
“incredibly complicated” economic challenge.
BSS/AFP/HR/0935