The recent USD Disbursement 12,000 million by the International Monetary Fund (IMP) marks a significant milestone in the Argentine economy. This amount, which represents 60% of the total program agreed last Friday, has raised the gross reserves of the Central Bank to USD 36,799 million.
This agreement positions Argentina as the country that concentrates almost half of all active loans of the IMP worldwide. The impact of this initial disbursement is not only reflected in the strengthening of the reserves of the Central Bank, but also in the implementation of economic measures aimed at stabilizing the national economy.
The Government has pledged to repurchase non -transferable letters in the hands of the Central Bank, a strategy designed to improve the balance of the monetary entity. These letters, whose nominal value amounts to approximately USD 70,000 million, have a significantly lower recovery value according to the valuation methods of the Central Bank.
In addition to the disbursement of IMPit is expected that in the coming weeks other USD 1.5 billion from international organizations such as the World Bank, IDB and CAF will enter in the coming weeks. An extension of the repo loan is also expected from international banks to the Central Bank for USD 2,000 million.
These capital injections seek to consolidate the country’s financial stability and provide additional support in a challenging economic context. The agreement with the IMF includes ambitious objectives, such as the accumulation of net reserves and the achievement of a fiscal surplus.
According to the IMF Staff report, the credit of the agency to Argentina will increase from 36.9% to 43.1% of the total loans in force, a proportion that will remain raised until fiscal year 2028. This level of exposure reflects the strategic importance of Argentina within the loan portfolio of the loans of IMP.
Flexibility
In terms of exchange policy, the government has adopted a managed flotation scheme, with an exchange rate that has stabilized around $ 1,200. This measure seeks to provide greater flexibility to the exchange market and reduce existing restrictions. However, the Central Bank must go out to buy currencies in the official market to comply with reservations accumulation goals.
The impact of this agreement transcends the economic field and has political and social implications. The need to implement tax and pension reforms, together with the elimination of distortive taxes, raises significant challenges for the government. In addition, sectors such as agroindustrial have shown caution in the face of economic measures and political times.
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