Argentina: Request for Stand-By Arrangement-Press Release and Staff Report
IMF Staff Country Reports, July 13, 2018
Source details
- Canonical URL
- Argentina: Request for Stand-By Arrangement-Press Release and Staff Report
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Bibliographic details
- Authors: Arrangement-Press Release, Staff Report Despite
- Published: July 13, 2018
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484367551.002
Background and policy actions (past two and a half years)
- President Macri’s administration took "bold steps to eliminate a wide range of distortions in the economy."
- Efforts to strengthen institutions included "the complete reconstruction of the statistics agency, in an effort to restore credibility to Argentine data."
- The administration pursued "an assertive effort to tackle corruption."
- Fiscal consolidation followed a "gradual approach."
External and domestic shocks, and market response
- A tightening of global financial conditions occurred alongside a "poor harvest" and "the introduction of a tax on nonresident holdings of short-term central bank paper," which "generated significant anxiety among market participants."
- Starting in mid-April, Argentina experienced "abrupt balance of payments pressures" as "both domestic and foreign investors decided to liquidate their position in onshore peso assets."
- To stem outflows, the authorities:
- "significantly increased short-term interest rates,"
- "tightened fiscal policy," and
- "sold foreign exchange."
IMF engagement
- "Shortly after taking these steps the government announced its intention to approach the IMF for an exceptional access Stand-By Arrangement."
- This content is presented as an IMF Staff Country Report.
Subject tags and keywords (as provided)
- Subject: Banking, Debt service, External debt, Fiscal policy, Fiscal stance, Inflation, Prices, Public debt
- Keywords: Argentina, auction, auction participant, auction rate, CR, Debt service, Fiscal stance, FX auction, Global, Inflation, ISCR, price, price auction, trading-hours FX intervention
International Monetary Fund. Western Hemisphere Dept. "Argentina: Request for Stand-By Arrangement-Press Release and Staff Report", IMF Staff Country Reports 2018, 219 (2018).
Content in this bundle
- Country Report