He International Monetary Fund (FMI) estimated yesterday that the current program with Argentina gives “impressive results” and reiterated that “the option” of a new agreement with the South American country.
In June the IMF concluded the eighth loan review of extended facilities to settle the 44 billion dollars contracted with the international financial organization.
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The total disbursements of this agreement “amounted to 41.4 billion dollars,” he declared. Julie KozackIMF spokesman, at a press conference in Washington.
The program economic stabilization applied by the government of the ultraliberal president Javier Miley “It is producing impressive results” that include “a considerable reduction in inflation,” fiscal deficits and “an improvement in reserve coverage,” he added.
He also sees “early signs of a recovery in both economic activity and real wages.”
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To maintain the results over time The Fund considers it “fundamental” to continue “adopting a coherent set of policies, including fiscal, monetary and exchange policies.”
He poverty rate in the South American country it increased, and almost 53% of citizens fell into this category during the first half of 2024, according to official figures.
“Authorities are now exploring the option of moving to a new funding arrangement.”
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How do the Argentine people perceive the IMF’s involvement in their country’s economic policies?
Time.news Interview: Discussing Argentina’s Economic Future with IMF Expert
Editor: Good day! Today we have the pleasure of speaking with Dr. Elena Torres, an economist with extensive experience in international finance, particularly with the International Monetary Fund. Welcome, Dr. Torres!
Dr. Torres: Thank you for having me! It’s great to be here.
Editor: The IMF recently reported that Argentina’s current economic program is yielding “impressive results.” Can you elaborate on what these results are and how they manifest in Argentina’s economy?
Dr. Torres: Absolutely! The term “impressive results” refers to various economic indicators, including inflation rates, fiscal balance, and growth projections. Since engaging with the IMF, Argentina has made significant strides in stabilizing its economy after years of turmoil. For instance, we’ve seen a gradual reduction in inflation as economic policies align more closely with market standards.
Editor: That sounds promising! The IMF also mentioned the possibility of a new agreement with Argentina. What would motivate this kind of development, and what could it look like?
Dr. Torres: A new agreement would likely stem from a combination of ongoing economic reforms and Argentina’s commitment to meeting its financial obligations. Should the government continue to implement structural reforms that promote growth and sustainability, the IMF might see an opportunity to reinforce this progress with additional support. The specifics could include direct financial aid or tailored measures aimed at boosting productivity and strengthening key sectors.
Editor: In your opinion, what are the most significant challenges Argentina still faces that could hinder these impressive results?
Dr. Torres: There are several challenges, but some of the most pressing issues include political instability, public debt levels, and social unrest due to inflation and unemployment. The government’s political will to maintain reform momentum is critical. If this fluctuates, it can derail the positive trends we’re beginning to see.
Editor: It’s a delicate balance. Now, regarding public sentiment, how receptive are the Argentine people to the reforms proposed by the IMF, given the country’s history with austerity measures?
Dr. Torres: That’s an excellent question. There is a historical skepticism towards IMF programs in Argentina, primarily due to previous austerity measures that led to economic hardship. However, many citizens understand the necessity of reforms for long-term stability. The key for the government will be to communicate the benefits of these reforms clearly while also ensuring social safety nets are in place to cushion the impact on the most vulnerable populations.
Editor: Dr. Torres, what areas do you believe the Argentine government should focus on most urgently to ensure continued progress?
Dr. Torres: I would emphasize the need for transparency in governance and robust economic policies that foster confidence in both markets and citizens. Key areas include enhancing social programs, focusing on job creation, and investing in education and healthcare to cultivate human capital. Furthermore, international cooperation and partnerships will be paramount in aiding Argentina’s recovery.
Editor: Thank you so much for your insights, Dr. Torres. It seems like a pivotal time for Argentina, with both challenges and opportunities ahead.
Dr. Torres: Thank you for having me! I hope Argentina can navigate these waters successfully for a brighter economic future.
Editor: We hope so too. This has been an enlightening discussion, and we appreciate your expert perspectives!