The program agreed by Argentina with the International Monetary Fund (IMF) establishes “pragmatic and realistic objectives along with credible policies that when implemented will strengthen macroeconomic stability and will begin to address the challenges,” said the agency’s spokesman multilateral, Gerry Rice.
In the traditional press conference that she gives every other Thursday in Washington, Rice stressed that the program aims to “strengthen public finances and begin the process of reducing persistently high inflation through a multifaceted strategy, which implies the gradual reduction of monetary financing of the fiscal deficit and improve the framework of monetary and exchange policies”.
It also provides for measures to “strengthen the debt market in pesos, public spending, gender inclusion in the labor market and competitiveness in key sectors; basic objectives or key reasons that led to the conclusion that the program should continue” , he claimed.
Paraphrasing Winston Churchill, Rice remarked that “what matters most now is implementation and, in that sense, we are at the end of the beginning of this process.”
Likewise, he stressed that the objectives coincide with those of the Government “in such a way that they can be met.”
Rice admitted that “the exceptionally high risks exist, but we think the program is set with realistic and pragmatic goals, along with sound policies, and, once implemented, will help achieve the stated goals.”
“They are exceptionally high because Argentina’s socioeconomic situation is fragile and new shocks are materializing,” he said.
Likewise, he pointed out that “the Argentine economy experienced three years of recession, with poverty and high-level inflation and, although it is recovering more and better than what was provided before, we are still facing a new global shock associated with the war in Ukraine.”
“It is not surprising that the risks facing the Argentine economy and therefore the program are also high, but we are committed to the program and we are resolutely supporting the program, working closely with the government of Argentina under a broad premise, the interest share of having a program that can be appropriated by the government and successfully implemented by the authorities,” he added.
On the other hand, he avoided commenting on dollarization; and he explained that the surcharges applied by the agency are “rates for very large loans.”
