The board of the International Monetary Fund (IMF) approved the seventh review of the Extended Facilities agreement. This instance enabled the sending of US$4.7 billion with which the pending commitments of January and February were already settled, but also imposed a series of new conditions that Argentina must follow to comply with the program.
“Our goal is to eventually unify the exchange rate and eliminate exchange controls, as conditions allow. To this end, we are accelerating work on the development of a roadmap for the gradual removal of exchange controls (restarted until the end of June 2024, structural target), which will need to be carefully calibrated, depending on the progress in the implementation of our stabilization plan”, can be read in the report that the IMF staff presented to the organization's board of directors.
The new structural goals of the agreement with the IMF, according to the report, are six:
Publish at the end of May of this year detailed reforms of the current tariff segmentation scheme to better target subsidies to the basic energy basket for vulnerable households. Refine the monetary policy framework and operations, to ensure that it is well anchored with clear and well-communicated medium-term objectives, consistent with price stability. This goal was agreed for the end of April 2024. Eliminate the existing preferential export scheme by the end of June 2024. By September 2024, strengthen the integration of relevant administrative databases to improve the targeting and efficient provision of social assistance , with technical assistance from the World Bank.Present to Congress the 2025 Budget Project consistent with the general objective of fiscal balance, which will be done on September 15, 2024, as established by law.Develop and execute a plan aimed at extending the maturities of a part of the internal debt that matures this year. The Government committed to doing this by the end of March 2024.
“In addition – the report continues – it is proposed to restore the existing structural goal on the development and publication of a roadmap for the gradual flexibility of exchange controls.” This was previously planned for the end of March and will now be done at the end of June.
News that is being updated.-