In order to support Argentina’s efforts to restore macroeconomic stability, the International Monetary Fund (IMF) has granted approval for an immediate disbursement of $4.7 billion. This decision was made following the completion of the IMF’s executive board’s seventh review of the Extended Fund Facility for Argentina.
Read more: IMF lifts 2024 global growth outlook
The IMF statement revealed that the total disbursements under this arrangement now amount to approximately $40.6 billion.
Additionally, the IMF board has granted an extension of the arrangement until December 31, 2024.
IMF Managing Director Kristalina Georgieva commented on the situation, stating that Argentina’s imbalances and distortions have worsened since the completion of the last reviews. She attributed this to the inconsistent policies implemented by the previous government.
Georgieva further explained that the stabilization plan, which has been agreed upon, focuses on establishing a strong fiscal anchor that puts an end to any central bank financing of the government.
Based on the most recent information provided by the country’s central bank, Argentina’s reserves increased to $27.6 billion on Wednesday, compared to $25.1 billion at the close of trading on Tuesday.
In a recent development, the International Monetary Fund (IMF) has revised its forecast for Argentina’s 2024 GDP. The IMF now predicts a contraction of 2.8 percent, a significant adjustment from its previous projection of a 2.8 percent expansion. This downward revision is largely attributed to the anticipated impact of the proposed reforms put forth by the new government.
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