Post by account_disabled on Feb 25, 2024 0:41:48 GMT -5
Bloomberg — The board of directors of the International Monetary Fund ( IMF ) approved this Wednesday a disbursement of US$4.7 billion to the government of Argentine President Javier Milei , according to a person with direct knowledge of the matter. The disbursement is part of a $44 billion refinancing program, the largest in the history of the international lender, and which was plagued by uncertainty during the electoral campaign that led to Milei's election. Wednesday's board decision comes after an agreement at the personal board level reached in Buenos Aires earlier this month.
An official statement from the IMF is expected on Wednesday afternoon. according to the person who asked not to be identified before the news release was made public.
Milei recently removed major austerity Country Email List measures, including key tax increases, from a sweeping reform package to appease lawmakers. Despite this, Economy Minister Luis Caputo insists that Argentina will still meet its “ zero deficit ” goal, and a primary surplus this year equivalent to 2% of gross domestic product is one of the goals set by the IMF.
The IMF also wants Argentina to increase its net foreign reserves to $10 billion by the end of the year. The Washington-based lender expects Milei's monetary policy stance to evolve in the coming months as an initial 54% currency devaluation spreads across the economy.
The disbursement exceeds the $3.3 trillion originally planned and gives the new president time to meet debt payments to the fund before deciding whether to continue with the current program agreed to by his predecessor or negotiate a new one.
Nicolas Posse, Milei's chief of staff, traveled to Washington this week and met with the IMF's number two, Gita Gopinath, on Tuesday afternoon. Milei met with Gopinath and IMF Managing Director Kristalina Georgieva at the World Economic Forum in Davos, Switzerland, earlier this month.
What this administration is doing is very aggressively addressing some of the deficiencies that we all see. Georgieva said during a Bloomberg event in Davos. “Prosecutor: out of control, spends more than he can. Reservations: sold out. That is why we are seeing progress on all these fronts.
The IMF cut its growth estimate for Argentina on Tuesday, predicting that South America's second-largest economy will contract for two consecutive years as Milei advocates for a “significant policy adjustment.” The fund expects GDP to contract 2.8% this year as inflation soars.
An official statement from the IMF is expected on Wednesday afternoon. according to the person who asked not to be identified before the news release was made public.
Milei recently removed major austerity Country Email List measures, including key tax increases, from a sweeping reform package to appease lawmakers. Despite this, Economy Minister Luis Caputo insists that Argentina will still meet its “ zero deficit ” goal, and a primary surplus this year equivalent to 2% of gross domestic product is one of the goals set by the IMF.
The IMF also wants Argentina to increase its net foreign reserves to $10 billion by the end of the year. The Washington-based lender expects Milei's monetary policy stance to evolve in the coming months as an initial 54% currency devaluation spreads across the economy.
The disbursement exceeds the $3.3 trillion originally planned and gives the new president time to meet debt payments to the fund before deciding whether to continue with the current program agreed to by his predecessor or negotiate a new one.
Nicolas Posse, Milei's chief of staff, traveled to Washington this week and met with the IMF's number two, Gita Gopinath, on Tuesday afternoon. Milei met with Gopinath and IMF Managing Director Kristalina Georgieva at the World Economic Forum in Davos, Switzerland, earlier this month.
What this administration is doing is very aggressively addressing some of the deficiencies that we all see. Georgieva said during a Bloomberg event in Davos. “Prosecutor: out of control, spends more than he can. Reservations: sold out. That is why we are seeing progress on all these fronts.
The IMF cut its growth estimate for Argentina on Tuesday, predicting that South America's second-largest economy will contract for two consecutive years as Milei advocates for a “significant policy adjustment.” The fund expects GDP to contract 2.8% this year as inflation soars.