## IMF Executive Board Completes Fourth Review Under Argentina’s Stand-By Arrangement, Approves US$5.4 Billion Disbursement

_IMF News, July 12, 2019_

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## Bibliographic details
- Published: July 12, 2019

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### Review outcome and disbursement
- The Executive Board completed the fourth review of Argentina’s economic performance under the 36-month Stand-By Arrangement (SBA) that was approved on June 20, 2018.
- Completion of the review allows the authorities to draw SDR 3.9 billion (about US$5.4 billion).
- Total disbursements since June 2018 amount to SDR 31.91371 (about US$44.1 billion).

### Macroeconomic assessment
- IMF Acting Managing Director and Chair David Lipton: “The Argentine authorities continue to show a strong commitment to their economic policy program, meeting all the applicable targets under the Fund-supported program.”
- Financial markets have stabilized, the fiscal and external positions are improving, and the economy is beginning a gradual recovery from last year’s recession.

### Monetary policy and inflation
- “Although inflation is still high, it is now on a downward path that is expected to continue in the coming months.”
- “The BCRA’s prudent management of monetary policy remains an essential anchor for both the exchange rate and the disinflation process.”

### Fiscal policy, social protection, and targets
- “The Argentine government has consistently demonstrated its commitment to fiscal discipline and has well-exceeded its fiscal targets for March and June.”
- Authorities requested IMF support to raise the end-September primary balance target to signal priority on placing Argentina’s debt-to-GDP ratio on a downward path.
- The government met fiscal targets while protecting social programs and using fiscal tools to shield the most vulnerable from the recession.
- Authorities requested IMF support to expand the social spending floor to incorporate assistance programs targeted at adults without children and low-income working mothers, aiming to expand coverage of the social safety net and improve gender equity.

### Debt management and market measures
- Authorities are working to increase rollover rates on public debt and lengthen the maturity of new debt issuance to mitigate financing risks.
- Ongoing efforts to improve the functioning of local sovereign debt markets aim to improve market liquidity and lower financing costs.

### Structural reform priorities and medium-term focus
- “Steadfast implementation of the policies underlying the IMF-supported program will be critical for continued progress.”
- As macroeconomic stability becomes more entrenched, policy efforts should focus more on reinvigorating plans for structural reforms.
- Identified reform areas:
  - Redesign the tax system.
  - Increase competition in domestic product markets.
  - Deepen efforts to strengthen governance and confront corruption.
- The recent MERCOSUR-EU trade agreement is noted as an important step toward raising growth potential, creating jobs, reducing poverty, and improving living standards.

*Press Release No. 19/268, July 12, 2019 — IMF Communications Department.*

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## References

- [David Lipton](http://www.imf.org/external/np/omd/bios/dl.htm)
- [Argentina and the IMF](http://www.imf.org/external/country/ARG/index.htm)
- [Press Releases](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)

_Source: https://www.imf.org/en/news/articles/2019/07/12/pr19268-argentina-imf-executive-board-completes-fourth-review-under-sba-approves-disbursement_