News Brief: IMF Praises Argentine Measures, Sees US$2b Loan Increase

March 13, 1995

IMF Praises Argentine Measures, Sees US$2b Loan Increase

The Managing Director of the IMF, Michel Camdessus, made the following statement on Argentina:

"The Argentine authorities today announced fiscal measures aimed at a substantial strengthening of Argentina's economic program. These new measures, together with those implemented at the end of February, are expected to yield some 2 percent of GDP and aim at generating an overall surplus of A$2 billion, or 0.7 percent of GDP, in 1995 in the nonfinancial public sector. Combined with projected receipts from privatization of A$2.4 billion, the surplus would be 1.5 percent of GDP.

"The IMF management welcomes the strong actions taken by Argentina. In the context of unsettled international financial markets, they demonstrate the firm commitment of the authorities to raise domestic savings, and to maintain fiscal and financial equilibrium and price stability.

"The authorities' fiscal package has been discussed with the IMF mission now in Buenos Aires in the context of negotiations of a program to be supported by a fourth year under the existing US$3.8 billion Extended Arrangement. IMF management expects to submit Argentina's request for the extension of the current arrangement, which could be augmented by an amount of about US$2 billion, to the IMF's Executive Board in the very near future. This would be in addition to the US$400 million remaining to be disbursed under the existing arrangement."


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