IMF Staff Statement on Argentina

IMF News, January 28, 2022

Source details

Press Release No. 22/18
Date: January 28, 2022
Issued by: IMF Communications Department, MEDIA RELATIONS
Press Officer: Maria Candia
Phone: +1 202 623-7100Email: MEDIA@IMF.org
IMF team led by Julie Kozack, Deputy Director of the Western Hemisphere Department, and Luis Cubeddu, mission chief for Argentina.
Statement summary: IMF staff and the Argentine authorities have reached an understanding on key policies as part of their ongoing discussions of an IMF-supported program.

Agreement on a fiscal consolidation path that will form a key policy anchor of the program.
The agreed fiscal path would:
- gradually and sustainably improve public finances;
- reduce monetary financing;
- allow for spending increases on infrastructure and science and technology;
- protect targeted social programs.
Agreed that a strategy to reduce energy subsidies in a progressive manner will be essential for improving the composition of government spending.

Understanding reached on a framework for monetary policy implementation as part of a multipronged approach to addressing persistent high inflation.
The framework aims to deliver positive real interest rates to support domestic financing and strengthen stability.

Agreement that additional financial support from Argentina’s international partners would help bolster the country’s external resilience, and its efforts to secure more inclusive and sustainable growth.

IMF staff and the Argentine authorities will continue their work in the coming weeks towards reaching a Staff-Level Agreement.
Final agreement on a program arrangement would be subject to approval of the IMF's Executive Board.

IMF Staff Statement on Argentina, January 28, 2022.