The IMF nods to Argentina for a new financing program

The International Monetary Fund (IMF) has confirmed that Argentina is exploring a new financing program, which has generated great expectations both in the economic and political spheres. This news comes at a crucial time for the country, which seeks to stabilize its economy and strengthen its international reserves.

Luis Cubeddu, deputy director of the IMF for Latin America and the Caribbean, confirmed in a press conference in Washington that Argentine authorities are “exploring the options” for a new financing program.

The IMF nods to Argentina for a new financing program

Currently, Argentina’s commitment to IMF It is carried out within the context of the Expanded Facility of the Fund (SAF), an extended facility loan to pay off the 44 billion dollars contracted with the international financial organization.

Cubeddu explained that Argentine authorities are considering moving to a new program and that more information on this is expected to be provided in the coming weeks.. The talks have deepened in an effort to better and fully understand Argentina’s plans in the period ahead.

The IMF nods to Argentina for a new financing program

The government of President Javier Milei is seeking funds to strengthen the Central Bank’s reserves and facilitate the exit from the exchange rate, the exchange control in force since 2019 that limits access to dollars in the country. He IMF has highlighted the important progress that has been achieved in Argentina, particularly in reducing inflation and establishing a very strong fiscal anchor.

According to Cubeddu, Argentina has achieved nine months of primary surpluses and global balances, which has allowed an improvement in the Central Bank’s balance sheet, as well as the strengthening of international reserves from extremely low levels.

The IMF nods to Argentina for a new financing program

Challenges

However, the IMF It has also noted that challenges persist and that maintaining the gains made will require policies to evolve and appropriately balance internal and external considerations.

In a message on social network IMFKristalina Georgieva, applauded “the progress in stabilizing the economy” while supporting “those who need it most.” The IMF’s annual report on Latin America and the Caribbean highlights that Argentina, the third largest economy in the region, will continue with last year’s recessive trend.