Argentina: Seventh Review under the Extended Arrangement under the Extended Fund Facility, Requests for Rephasing of Access, Extension of the Arrangement, 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, February 1, 2024
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- Argentina: Seventh Review under the Extended Arrangement under the Extended Fund Facility, Requests for Rephasing of Access, Extension of the Arrangement, 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
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Bibliographic details
- Published: February 1, 2024
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400265402.002
Macroeconomic imbalances and program status
- Since completion of the last reviews, Argentina’s imbalances and distortions have become dangerously acute.
- The program has gone significantly off-track, reflecting highly expansionary and inconsistent policies of the previous administration.
- Key manifestations of the deterioration:
- The fiscal deficit rose further.
- International reserves were depleted.
- Reliance on interventionist measures intensified.
- Triple digit inflation.
- A further deterioration of the central bank’s balance sheet.
- A sharp rise in importers’ commercial debt.
Policy actions and initial effects
- The new administration has begun to take bold actions to restore macroeconomic stability and address many of the long-standing impediments to growth and investment.
- These initial actions are starting to bear fruit, although the path to stability will be challenging.
Implementation challenges and political economy
- Efforts are underway to build the social and political support for the stabilization plan.
- Key implementation constraints:
- A divided Congress.
- A fragile social situation.
- These factors present important implementation challenges for the stabilization program.
Source: Argentina: Seventh Review under the Extended Arrangement under the Extended Fund Facility, Requests for Rephasing of Access, Extension of the Arrangement, 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), February 1, 2024.
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