The International Monetary Fund (IMF) has praised President Javier Milei’s government for taking recent measures to boost Argentina’s international reserves.
Earlier this week, Argentina’s Central Bank rolled out new economic measures designed to boost foreign currency holdings in response to demands from the IMF. The steps included a US$2-billion repo agreement with international banks.
Argentina received US$12 billion from the IMF in April, the first instalment of a 20 billion dollar loan.
On Monday, Buenos Aires launched a new tender for debt purchasable in dollars and payable in pesos.
It did so in May, but for foreign investors, and raised US$1 billion. With this new issuance, the government hopes to raise US$7 billion by the end of the year.
As it has done consistently since Milei came to power in December 2023, the Fund praised the economic policies of Latin America's third-largest economy.
Despite a more complex international environment, the authorities “have continued to make remarkable and impressive progress,”IMF spokeswoman Julie Kozack said at a press conference on Thursday.
She said the IMF would continue to engage "frequently and constructively" with authorities in Buenos Aires as part of the first review of the new agreement.
“We welcome the recent measures announced this week” because “they represent another important step in efforts to consolidate disinflation, support the government's financing strategy and to rebuild reserves,” she said.
Kozack referred in particular to initiatives “to strengthen the monetary framework and improve liquidity management.”
“The Treasury's successful re-entry into capital markets and other actions to mobilise financing for Argentina are also expected to boost reserves and stability overall,” said the financial organisation's spokesperson, emphasising that the country's stability is underpinned by the “implementation of a solid fiscal anchor.”
Kozack also announced that “a technical mission will visit Buenos Aires at the end of June to assess progress on the programme's goals and objectives and to discuss the reform agenda” as part of the first review of the loan.
– TIMES/AFP
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