The International Monetary Fund The financial institution said, today, Monday, that the (International Monetary Fund) has reached an agreement at the level of officials to extend the financing program with Argentina in the amount of 44 thousand million dollars, which would enable the country to finance nearly 4 thousand million dollars.
The approval, which must be approved by the Executive Board of the International Monetary Fund, will enable Argentina to finance $3.9 billion, which is trying to rebuild its reserves and bring down the very high rate of inflation.
Argentina, the world’s largest grain exporter, reached a new agreement with the International Monetary Fund this year to replace the failed 2018 programme. The new program was crucial for the country to meet IMF commitments.
The deal entails economic goals, including rebuilding depleted reserves and reducing a large fiscal deficit to improve the country’s financial conditions.
“Most of the program’s revised quantitative targets were achieved at the end of June 2022, except for the minimum net international reserves, mainly due to higher-than-scheduled import volume growth,” it said in a statement. .
A subsequent period of volatility in the currency and bond markets was mitigated by decisive policy decisions to correct past setbacks and rebuild credibility.
The International Monetary Fund praised the steps taken by the Argentine Economy Minister Serge Massawho took office in August after a period of instability that included the resignation of Martin Guzman as head of the economy and the passing of Silvina Patakis for the job for two weeks.
Regarding Argentina’s reserves, which have proven difficult to rebuild, the IMF said they should grow by about $9.8 billion in 2022-23, in line with the program’s goals. However, the global economic climate has weighed on and boosted growth inflation.
Despite this, under decisive actions by the new economic team, market pressures dissipate, and growth expectations remain stable at 4% for this year, before tapering back to a potential rate of 2% for 2023 and beyond.” The IMF added.