IMF Board approves payment of almost US$800 million to Argentina

The IMF’s executive board voted Thursday to approve a payment of nearly $800 million to Argentina as the country continues a program of drastic economic reforms under its libertarian president, Javier Milei.

A self-declared “anarcho-capitalist”, Milei has promised to halt Argentina’s economic decline and reduce the budget deficit to zero, and has embarked on a program to reduce public spending and reduce inflation, which remains at an annual rate of more than 275 percent.

“The Executive Board assessed that the program was firmly on track, with all quantitative performance criteria by the end of March 2024 met with margins,” the International Monetary Fund said in a statement.

The decision by the IMF’s executive board to approve the eighth review of its loan program with the Latin American country will allow the disbursement of just over US$793 million, bringing total disbursements under the existing program to more than US$41 billion of dollars.

“The Council emphasized that sustaining strong progress requires improving the quality of fiscal adjustment, initiating steps towards an improved monetary and exchange rate policy framework, and implementing the structural agenda,” the IMF said.

“Continued efforts will also be needed to support the vulnerable, expand political support and ensure agility in policymaking,” he added.

“The good news continues,” wrote Milei on X, sharing the IMF statement.

The approval of the payment follows the announcement earlier in the day that Argentine inflation reached 4.2% in May, the lowest figure in two and a half years, according to statistics agency INDEC.

da/bfm/md