After approving the disbursement, the IMF called for making exchange rate policy more flexible, reducing subsidies, and expanding profits.

The IMF Board of Directors approved this Thursday the eighth review of the program with Argentina.

He International Monetary Fund (IMF) This Friday, the Argentine government reiterated its request to improve the quality of adjustments through tax refunds Profits -after the rejection of that point of the fiscal package in the Senate-, a major rationalization of Subsidy And Tax Expenditure and strengthen control public spending. He also called for making the exchange rate policy more flexible and raising it gradually Dollar Stocksin addition to the need for Rate of interest the context becomes positive as a condition for Coin Contest what did you dream Xavier Miley,

This was expressed by the Deputy Managing Director of the IMF, in an extension of the statement issued yesterday by the organization in which it was announced that its Board of Directors had approved the eighth review of the program with Argentina, on which a Disbursement of USD 800 million. Minister of Economy, Louis Caputosaid this week that the country would begin negotiations to reach a new programme in which it hopes to receive fresh funds to lift capital controls.

Miley met with the head of the fund in Italy this Friday, Kristalina Georgieva, Within the framework of the G7 summit held in the country to which the President was invited.

“Impressive progress has been made towards achieving overall fiscal balance and priority should now be given to further improving the quality of adjustment. Efforts should continue to reform personal income taxes, rationalise subsidies and tax expenditures, and strengthen expenditure control. After this year, deeper reforms of the tax, pension and income-sharing systems, including eliminating distortionary taxes, will be necessary,” Gopinath said.

Luis Caputo speculates that Argentina is negotiating a new program with the IMF.

The Deputy Managing Director of the Fund highlighted the importance that monetary and exchange policies must evolve to strengthen the deceleration process. inflation and improve the accumulation of of booking. In that sense, he said that to support the transition toward free currency competition that Miley has promised, “the real policy rate must be positive to support demand for the peso and deflation.”

“Exchange rate policy should be made more flexible to reflect fundamentals and safeguard disinflation and reserve accumulation, particularly capital flow management (CFM) measures should be gradually eased as conditions permit,” the official said.

In this sense, Gopinath remarked that additional measures are needed to define the key foundations of the new monetary arrangement proposed by the government, as well as to develop and implement a framework for a more flexible exchange rate and capital flow controls.

“A greater focus on micro-level reforms will help drive the recovery and boost potential growth. The proposed reforms aimed at improving competitiveness, enhancing labour market flexibility and improving the predictability of the regulatory framework for investment are steps in the right direction, and their approval and careful implementation should be a priority. This should be complemented by reforms to improve transparency and governance, including the AML/CFT framework,” he said.

International Monetary Fund (IMF) Managing Director, Kristalina Georgieva, and Argentina’s President, Javier Melli, speak ahead of a session on artificial intelligence (AI), energy, Africa and the Mediterranean on the second day of the G7 summit. Borgo Egnazia, Italy. June 14, 2024. Reuters/Louisa Gouliamaki

Meanwhile, Gopinath highlighted the Argentine government’s willingness to pursue the objectives agreed with the organisation: “Since the last review, continued measures set to restore macroeconomic stability have put the programme firmly in motion. The stabilisation plan, centred on a strong fiscal anchor without new monetary financing, has generated fiscal and external surpluses, a marked turnaround in reserves, a strengthening of the central bank’s balance sheet and faster-than-expected disinflation, while social spending has increased. As of the end of March all quantitative performance criteria had been met by a margin, with good progress on the structural agenda.”

The IMF deputy director also reiterated the need to enhance political and social support: “However, some macroeconomic imbalances and obstacles to growth remain, and a difficult path of adjustment still lies ahead. Policies need to be improved to build on the progress made so far. “Efforts to broaden political and social support for reforms, as well as to protect the most vulnerable, should continue.”

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