IMF Expresses Support for Argentina’s Ambitious Stabilization Plan: Achieving Macroeconomic Stability Through a Strong Fiscal Anchor and Social Assistance Programs.

The International Monetary Fund (IMF) has expressed its support for the ambitious stabilization plan being implemented by the Argentine authorities. This plan aims to restore macroeconomic stability through a strong fiscal anchor, policies to reduce inflation, and measures to restore reserves and promote growth.

In a press conference in Washington, Julie Kozack, the Fund’s Communications Director, discussed the impressive progress made in Argentina’s economy. She emphasized that while there have been significant improvements in fiscal terms, international reserves, and inflation rates, stability is not yet assured. To achieve this, she emphasized that a firm application of measures is necessary.

Kozack highlighted the quality of fiscal adjustment as a key focus for achieving macroeconomic stability. She noted that the achievement of a fiscal surplus in January and February, the recovery of international reserves, and the decreasing inflation rate are all signs of progress. However, she cautioned that ongoing efforts are required to maintain stability and improve social assistance programs to support vulnerable populations during the adjustment process.

The IMF also praised Argentina’s initiatives to increase social assistance programs and emphasized the importance of building social and political support for reforms. Minister Luis Caputo and his team are expected to attend the Spring Assembly of the IMF and World Bank in Washington to continue negotiations and discussions related to the economic program.

While Kozack noted that it is premature to discuss details about a future program with additional funds from the IMF, she stressed that current support measures remain focused on achieving macroeconomic stability and sustainable growth in Argentina. Overall, Kozack highlighted Argentina’s progress towards achieving its reserve accumulation and fiscal deficit goals but emphasized that ongoing efforts are necessary to maintain stability during this period of adjustment.