Argentina: Fifth and Sixth Reviews Under the Extended Arrangement Under the Extended Fund Facility, Request for Rephasing of Access, Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina
IMF Staff Country Reports, August 25, 2023
Source details
- Canonical URL
- Argentina: Fifth and Sixth Reviews Under the Extended Arrangement Under the Extended Fund Facility, Request for Rephasing of Access, Waivers of Nonobservance of Performance Criteria, Modification of Performance Criteria and Financing Assurances Review-Press Release; Staff Report; and Statement by the Executive Director for Argentina
Other formats
Bibliographic details
- Published: August 25, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400253027.002
Executive summary and purpose
- Presents Argentina’s Fifth and Sixth Reviews under the Extended Arrangement under the Extended Fund Facility, Request for Rephasing of Access, Waiver of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review.
- Since completion of the fourth review, key program targets were missed reflecting the historic drought along with policy slippages.
- Agreement reached on a new policy package centered on rebuilding reserves and enhancing fiscal order.
- Continued strong policy implementation is identified as critical to safeguard stability and strengthen medium-term sustainability.
Key findings and diagnostics
- Missed targets: Key program targets were missed after the fourth review due to the historic drought and policy slippages.
- Macroeconomic backdrop: High inflation and rising balance of payments pressures.
- New policy focus: Rebuild reserves and enhance fiscal order to address vulnerabilities.
Risks and uncertainties
- Elevated risks due to:
- An increasingly fragile economic and social situation.
- Rising program implementation difficulties.
- Election-related uncertainties.
- Conditional risk drivers:
- Risks could intensify should the projected improvements in climate conditions not materialize.
- Risks could intensify if external conditions worsen.
- Implementation caveat:
- Even with steadfast implementation, elements of the new policy package may still need to be recalibrated to secure the intended results.
Policy implications and recommendations
- Maintain strong and continuous policy implementation to:
- Safeguard macroeconomic stability.
- Strengthen medium-term fiscal and external sustainability.
- Monitor climate developments and external conditions closely given their potential to amplify risks.
- Be prepared to recalibrate elements of the policy package if intended results are not achieved despite steadfast implementation.
Publication and metadata
- Publication date: August 25, 2023
- Series: Country Report No. 2023/312
- Issue: 312
- Volume: 2023
- Pages: 116
- DOI: https://doi.org/10.5089/9798400253027.002
- Stock No: 1ARGEA2023002
- ISBN: 9798400253027
- ISSN: 1934-7685
- Subject: Financial markets, Foreign exchange, International organization, Monetary policy
- Keywords: Caribbean, Currency markets, electricity price, Exchange rates, Exchange restrictions, Global, Multiple currency practices, policy package, production cost estimate, recovery objective, staff appraisal, waivers of nonobservance of performance criteria
Source: IMF Staff Country Reports — "Argentina: Fifth and Sixth Reviews Under the Extended Arrangement Under the Extended Fund Facility, Request for Rephasing of Access, Waiver of Nonobservance of Performance Criteria, Modification of Performance Criteria, and Financing Assurances Review", August 25, 2023.
Content in this bundle
- 1argea2023002