WASHINGTON.- The International Monetary Fund (FMI) announced this Tuesday that it “supports” the austerity measures adopted in Argentina by President Javier Milei and considers them “a good basis.”
“I welcome the decisive measures announced” this Tuesday by Milei and her team “to address Argentina’s significant economic challenges, an important step towards restoring stability and rebuilding the country’s economic potential,” wrote the managing director of the Background, Kristalina Georgieva, in a message on the social network X.
Only two days after his inauguration, the president began to pull the scissors as he said he would, convinced that the country needs a “shock” treatment to overcome the crisis.
His Minister of Economy, Luis Caputo, began by devaluing the currency by more than 50%. He also warned that the country is at risk of falling into “hyperinflation.”
The government will cut energy and transportation subsidies, shrink the number of ministries, and halt publicly funded infrastructure projects that have not started.
Argentina loan with the IMF
Argentina has to pay off a loan of 44 billion dollars, in the midst of its worst economic crisis in two decades, with inflation of 140% and poverty that reaches 40% of the population.
“The IMF’s technical staff supports the measures announced today by the new Minister of Economy of Argentina,” said the Fund’s communications director, Julie Kozack, in a statement transmitted to the media.
“These strong initial actions aim to significantly improve public finances in a way that protects the most vulnerable in society and to strengthen the exchange rate regime,” he adds, stating that the Fund will work “expeditiously” with the Argentine authorities.
According to Kozack, the application of the measures “will contribute to stabilizing the economy and laying the foundations for more sustainable growth led by the private sector.”
“After the serious setbacks in economic policy in recent months, this new package of measures constitutes a good basis for continuing discussions aimed at redirecting the current program supported by the Fund,” says the communications director.
Source: AFP
