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BCN-09
IMF-ECONOMY-ARGENTINA-LOANS-AID
IMF’s Lagarde praises Argentina economic reform plan
WASHINGTON, June 14, 2018 (BSS/AFP) – IMF chief Christine Lagarde on
Wednesday applauded Argentina’s economic reform plan proposed to secure $50
billion in financing, but made it clear it was designed in Buenos Aires, not
imposed from Washington.
The program, which she said paid particular attention to protecting the
poor and vulnerable, will go to the IMF Executive Board for final approval of
the three-year loan deal on June 20.
IMF staff reached an agreement with President Mauricio Macri’s government
last week on the standby financing arrangement which aims to bolster market
confidence in the government’s finances.
But the announcement was greeted by vocal protests and threats of yet
another labor strike. The country has a bitter history with the Washington-
based lender, seen in Argentina as imposing tough conditions that worsened
economic pain during a crisis 17 years ago.
Lagarde and other IMF officials have stressed that their role is a
supporting one, and the economic plan has flexibility to maintain social
spending.
“As I have said before, the policy plan underpinning the IMF’s financial
assistance is owned and designed by the Argentine government, one aimed at
strengthening the economy for the benefit of all Argentines,” Lagarde said in
a statement.
“I particularly welcomed the emphasis placed by President Macri’s economic
team on supporting the most vulnerable in society,” she said, noting the
“concrete commitments to preserve the current level of social spending and
increased resources for social assistance programs.”
Argentina, Latin America’s third-largest economy, asked for IMF assistance
to help the country face mounting inflation, budget deficits and a weakening
currency.
She said the Macri government was set to release the details of the plan
shortly, which includes “meaningful” economic targets, “ambitious” fiscal
goals and “realistic inflation targets.”
“These clear policy intentions will help bolster market confidence and
address a range of long-standing vulnerabilities,” Lagarde said.
BSS/AFP/HR/0952