{ "title": "Transcript of the IMF Press Conference on the IMF’s Executive Board Approval of Argentina’s Stand-By Arrangement", "publication": "IMF News, June 21, 2018", "sourceUrl": "https://www.imf.org/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement", "canonical": "https://www.imf.org/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement", "overlayPath": "/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/index.md", "summary": "Executive Board approved Argentina's request for a 36 months stand by arrangement in the amount of 50 billion dollars.", "authors": [ "Arrangement Transcript Resources Christine Lagarde Related Links Argentina" ], "publishDate": "2018-06-21", "sections": [ { "heading": "Program approval and size", "content": "- Executive Board approved Argentina's request for a 36 months stand by arrangement in the amount of 50 billion dollars.\n- Approval framed as evidence of the international community's trust in Argentina's reform drive and support for the government economic plan." }, { "heading": "Four core pillars of the program", "content": "- Fiscal consolidation\n - Accelerate pace of federal government's deficit reduction.\n - Goal: restore the primary balance by 2020 (one year earlier than the initial plan).\n - Expected outcomes: lessen government financing needs, put public debt on a downward trajectory, create path for improved confidence and inclusive growth.\n- Inflation reduction\n - Achieve lower inflation through an independent central bank that can set realistic inflation targets.\n - Commitment to a flexible and market-determined exchange rate.\n- Protection of vulnerable groups and social priorities\n - Ensure spending on social assistance as a share of GDP does not decline during the next three years of the program.\n - Provisions to increase budget allocation for social priorities if social conditions worsen.\n - Reforms in the tax code and social legislation to boost female participation in the labor force.\n- Balance of payments and reserves\n - Rebuild international reserves and reduce vulnerability to pressure on the capital account." }, { "heading": "Conditionality, ownership, and governance", "content": "- Program described as designed and owned by Argentine authorities and tailored to domestic circumstances.\n- IMF emphasized need for continued ownership and commitment by Argentine authorities for success.\n- IMF staff engaged directly with new central bank governor (Mr. Caputo) to ascertain full support for program directions and policies negotiated with the IMF." }, { "heading": "Monetary policy and exchange rate framework", "content": "- Monetary regime: inflation targeting with a freely floating exchange rate.\n- Acknowledgement of limited, targeted interventions:\n - Interventions permissible under \"very high volatility and disorderly market conditions\" to address rapid exchange rate moves, low volumes, or dysfunctional market conditions.\n - Such interventions are consistent with a floating exchange rate and macro fundamentals.\n- Regional precedents cited: Colombia, Brazil, Mexico and other emerging markets use flexible exchange rates plus occasional interventions to manage shocks." }, { "heading": "Debt, disbursement, and repayment mechanics", "content": "- First tranche has been disbursed \"as of today\".\n- Remainder of the program resources intended to remain precautionary; authorities expressed intention to maintain the program as precautionary.\n- Program is 36 months; disbursement and usage of resources to be reassessed at each quarterly review.\n- Uncertainty acknowledged: \"It is clearly too early to anticipate how much of the resources are going to be disbursed.\"" }, { "heading": "Domestic debt instruments and rollover risk", "content": "- Program includes plan to gradually reduce the stock of Lebacs and address rollover risks.\n- Government announced exchanges of marketable bonds for central bank-held bonds to allow gradual reduction of Lebacs in the market and improve amortization schedules for central bank and sovereign debt.\n- Authorities reportedly ahead of the program path in the first few weeks for the initial months." }, { "heading": "Growth outlook and trade-offs", "content": "- Tight macro policies and financial market volatility expected to slow growth in the current year.\n- Staff view: growth will pick up \"next year and even more the year after once the major stabilization is achieved.\"\n- Trade-offs noted: macro stabilization will take a toll on growth in the short term but is intended to lay groundwork for rebound through higher private investment and stronger exports." }, { "heading": "Monitoring, reviews, and contingencies", "content": "- Quarterly reviews to assess targets, disentangle missed targets, negotiate remedial measures or redesign targets as needed.\n- IMF staff view: targets are expected to be met; however, some targets depend on external circumstances and will be addressed in reviews.\n- Emphasis on strong political commitment from authorities, including explicit presidential support." }, { "heading": "Communications and public concerns", "content": "- IMF response to concerns about returning to Argentina and risk of a repeat of the 2001 crisis:\n - IMF framed its support as undertaken with humility and attention to domestic circumstances.\n - Reiterated that the program is Argentine-owned and, if implemented, has a strong chance of success.\n\nTranscript of the IMF Press Conference on the IMF’s Executive Board Approval of Argentina’s Stand-By Arrangement — June 21, 2018, IMF Communications Department\n\n---\n\n\n References\n\n- Christine Lagarde\n- Argentina and the IMF\n- Transcripts\n- PRESS CENTER\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement" } ], "bullets": [ "[Markdown version](/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/index.md)", "[Structured JSON version](/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/index.json)", "[Bundle manifest](/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/bundle-manifest.json)", "Authors: Arrangement Transcript Resources Christine Lagarde Related Links Argentina", "Published: June 21, 2018", "Executive Board approved Argentina's request for a 36 months stand by arrangement in the amount of 50 billion dollars.", "Approval framed as evidence of the international community's trust in Argentina's reform drive and support for the government economic plan.", "Fiscal consolidation", "Inflation reduction", "Protection of vulnerable groups and social priorities", "Balance of payments and reserves", "Program described as designed and owned by Argentine authorities and tailored to domestic circumstances.", "IMF emphasized need for continued ownership and commitment by Argentine authorities for success.", "IMF staff engaged directly with new central bank governor (Mr. Caputo) to ascertain full support for program directions and policies negotiated with the IMF.", "Monetary regime: inflation targeting with a freely floating exchange rate.", "Acknowledgement of limited, targeted interventions:", "Regional precedents cited: Colombia, Brazil, Mexico and other emerging markets use flexible exchange rates plus occasional interventions to manage shocks.", "First tranche has been disbursed \"as of today\".", "Remainder of the program resources intended to remain precautionary; authorities expressed intention to maintain the program as precautionary.", "Program is 36 months; disbursement and usage of resources to be reassessed at each quarterly review.", "Uncertainty acknowledged: \"It is clearly too early to anticipate how much of the resources are going to be disbursed.\"", "Program includes plan to gradually reduce the stock of Lebacs and address rollover risks.", "Government announced exchanges of marketable bonds for central bank-held bonds to allow gradual reduction of Lebacs in the market and improve amortization schedules for central bank and sovereign debt.", "Authorities reportedly ahead of the program path in the first few weeks for the initial months.", "Tight macro policies and financial market volatility expected to slow growth in the current year.", "Staff view: growth will pick up \"next year and even more the year after once the major stabilization is achieved.\"", "Trade-offs noted: macro stabilization will take a toll on growth in the short term but is intended to lay groundwork for rebound through higher private investment and stronger exports.", "Quarterly reviews to assess targets, disentangle missed targets, negotiate remedial measures or redesign targets as needed.", "IMF staff view: targets are expected to be met; however, some targets depend on external circumstances and will be addressed in reviews.", "Emphasis on strong political commitment from authorities, including explicit presidential support.", "IMF response to concerns about returning to Argentina and risk of a repeat of the 2001 crisis:", "[Christine Lagarde](https://www.imf.org/en/About/senior-officials/Bios/christine-lagarde)", "[Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)", "[Transcripts](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/index.md", "json": "/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/index.json", "bundleManifest": "/en/news/articles/2018/06/21/tr062018-argentina-executive-board-approves-stand-by-arrangement/bundle-manifest.json" }, "generatedAtUtc": "2026-09-25T21:56:53.956Z" }