Argentina: First Review under the Stand-By Arrangement; Inflation Consultation; Financing Assurances Review; and Request for Rephasing, Augmentation, Waivers of Nonobservance and Applicability of Performance Criteria, and Modification of Performance Criteria-Press Release; Staff Report; and Staff Supplement

IMF Staff Country Reports, October 26, 2018

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Canonical URL: Argentina: First Review under the Stand-By Arrangement; Inflation Consultation; Financing Assurances Review; and Request for Rephasing, Augmentation, Waivers of Nonobservance and Applicability of Performance Criteria, and Modification of Performance Criteria-Press Release; Staff Report; and Staff Supplement

Covers Argentina’s First Review Under the Stand-By Arrangement (SBA), Inflation Consultation, Financing Assurances Review, and Requests for Rephasing, Augmentation, Waivers of Nonobservance and Applicability of Performance Criteria.
All performance criteria and the structural benchmark for end-June were met.
Authorities have requested changes in the nature of IMF support under the SBA, recognizing that restoring stability will require a significant reshaping of their policy program.
IMF staff supports the authorities’ request to modify the program supported by the SBA.

Authorities are strengthening their policy program by:
- Eliminating the primary fiscal deficit in 2019.
- Targeting a primary surplus in 2020.

The paper emphasizes the proactive recognition by authorities that restoring stability requires significant policy reshaping.
The IMF staff assessment endorses the requested modification of the SBA-supported program.

Subjects: Economic sectors, Fiscal policy, Fiscal stance, Foreign exchange, Monetary base, Money, Public debt, Public sector.
Keywords: Argentina, authorities' effort, budget support, Center inflation target, CR, debt service, draft budget, Fiscal stance, Global, inflation expectation, ISCR, liquidity position, Monetary base, Public sector, verifiable monetary policy regime, y inflation.