IMF Endorses Argentina's Progress in $20 Billion Deal
The IMF board has concluded its first review of Argentina's $20 billion program, releasing $2 billion. Though Argentina missed its reserve target, policy changes support economic growth. The flexibly managed peso and new strategies aim for a resilient, market-based economy.
The International Monetary Fund (IMF) board announced on Thursday the successful completion of its first review of the $20 billion arrangement with Argentina, approving a $2 billion payout.
According to an IMF statement, "Strong policy implementation has bolstered the transition to a flexible exchange rate regime, resulting in decreasing inflation and sustained economic growth." However, the IMF also noted that Argentina failed to meet its mid-June goal for accumulating net international reserves. Last week, IMF staff indicated a consensus with the Argentine government on strategies, including maintaining the fiscal anchor and reserve accumulation.
The IMF staff further commented that these efforts would be supported by initiatives aimed at fostering an open, resilient, and market-driven economy. Following the 48-month, $20 billion agreement reached with the IMF in April, Argentina relaxed longstanding currency controls, allowing the peso to fluctuate within a set range.
(With inputs from agencies.)
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