Statement by IMF Managing Director Christine Lagarde at the Conclusion of the Executive Board’s Informal Meeting on Argentina
IMF News, May 18, 2018
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Bibliographic details
- Published: May 18, 2018
Meeting context and purpose
- Date: May 18, 2018.
- Location: Washington D.C.
- Event: The Executive Board of the International Monetary Fund met for an informal meeting on the Argentine authorities’ request for financial support.
- Press Release number: Press Release No. 18/182.
- Press contact: PRESS OFFICER: Raphael Anspach; Phone: +1 202 623-7100; Email: MEDIA@IMF.org.
- Chair: IMF Managing Director Christine Lagarde chaired the meeting and delivered the concluding statement.
Recent economic developments and vulnerabilities
- Since President Macri’s administration took office, Argentina has been engaged in a fundamental and welcome transformation of its economy.
- Many policies have moved quickly while the government sought to build and maintain social consensus in calibrating the pace of reform efforts, including fiscal adjustment.
- This calibrated approach was acknowledged to carry certain vulnerabilities.
- Argentina is facing significant financial volatility driven in part by:
- Tightening global financial conditions.
- A drought that undermined Argentina’s agricultural output.
Request to the IMF and program framing
- The Argentine authorities requested IMF support to help counter market volatility and protect growth, job creation, and social cohesion in Argentina.
- Christine Lagarde conveyed to the Executive Board the Argentine authorities’ intention to request an exceptional access Stand-By Arrangement that would underpin their economic program.
- The program is described as “Argentina’s economic program,” with full ownership by President Macri and his government.
Program goals (as stated)
- Creating a clear path to strong, sustained, and equitable growth and robust job creation.
- Restoring market confidence through a clear macroeconomic program that lessens financing needs and puts public debt on a firm downward trajectory.
- Protecting society’s most vulnerable during this transition.
- The IMF statement: “We fully endorse those goals.”
Process and next steps
- IMF staff and the Argentine delegation are in discussions; these discussions will continue in Washington, D.C. in the period ahead.
- As stated by the Managing Director: “this is a partnership between Argentina and the IMF, and our shared goal is to reach a rapid conclusion of these discussions.”
Statement by IMF Managing Director Christine Lagarde at the Conclusion of the Executive Board’s Informal Meeting on Argentina, May 18, 2018.
