According to the International Monetary Fund (IMF), the executive board approved Friday’s second review of Argentina’s extended fund facility program worth $44 billion. The lender noted that Argentina had made efforts to achieve the set targets.
This approval permits the issuance and disbursement of $3.8 billion. The total arrangement’s disbursements are approximately $17.5 billion.
The IMF stated in a statement that “Decisive actions taken by the new economic team were critical for stabilizing markets and rebuilding trust.”
Argentina is a major grain producer and signed a new IMF agreement earlier this year to replace the 2018 failed program.
The new program included economic targets such as rebuilding the depleted international reserve and reducing a deep fiscal deficit in order to improve the country’s finances.
The IMF stated that the IMF met the “relevant end September quantitative program targets, including net international reserves and monetary funding of the fiscal deficit.”
The source stated that “the (exchange rate gap) gap and inflation can be decreased little by little through the implementation of durable fiscal and monetary actions,” but cautioned that it would take time.
