The IMF standby to Argentina means a big support to President Macri´s Administration

The IMF press office reported that the so-called “board” gave its approval to the “strengthened economic plan” promoted by the Government of Mauricio Macri, for which it resolved to expand from the original US$ 50,000 million to US$ 56,300 million the loan.

He also informed that 5,700 million dollars will be available “immediately” for the country, which increases the total disbursements from June to US $ 20.400 million.

The agency concluded the first review of Argentina’s economic performance under the 36-month credit agreement approved on June 20, 2018 and extended as of early September. “The authorities have requested to use this IMF funding as budgetary support,” the Fund said.

The Finance Minister, Nicolas Dujovne, and the managing director of the IMF, the French Christine Lagarde, had announced that the credit agreement had been extended to 57,100 million dollars, but finally the technical numbers showed a somewhat smaller amount: it is that The aid package is calculated using the Special Drawing Rights (SDR) system, which includes a currency basket.

In exchange for financial support, the government committed to the IMF to cut the primary fiscal deficit to zero in 2019.

The Chamber of Deputies took the first step to approve a more austere Budget that involves cuts in public works, among other sectors, and that the Senate could turn into law on November 14 next.

Despite approving the aid package, the IMF predicted that the situation will not improve in the short term in Argentina, estimating a GDP contraction of 1.6% in 2019.

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