IMF Approves New Funds for Milei’s Argentina, Praises Ambitious Plans, Recognizes ‘Difficult Inheritance’ From Peronist Socialists
During the Presidential Elections campaign in Argentina, it was enraging to see the no-nonsense mainstream economic theories of the economist Javier Milei treated like ‘radical and dangerous ideas’, while the socialist-Peronists, whose idiotic policies put 40% of the country below the poverty line treated like ‘the sensible choice’.
So while I may not be the greatest fan of the International Monetary Fund (IMF), it is a welcome development that they openly and unambiguously support the heroic struggle by Milei to rebuild the destroyed Argentine economy.
The IMF has just approved the most recent review of its $44 billion program with Argentina – allowing for a new payment of $4.7 billion.
The fund explained that, even as key program targets were missed through the end of last year, it approved ‘waivers of non-observance’.
“‘Program targets were modified, in line with the authorities’ initial actions and ambitious plans to bring the program back on track’, the fund said.”
Argentina’s government and IMF staff have agreed on the seventh review of the program, delayed amid a change of government to Milei’s administration.
“‘The new administration is taking bold actions to restore macroeconomic stability and begin to address long-standing impediments to growth’, said IMF Managing Director Kristalina Georgieva in the statement.
She said that ‘inconsistent policies of the previous government’ had left a ‘difficult inheritance’.”
How difficult? The IMF slashed its forecast for Argentina’s 2024 GDP to a 2.8% contraction from a previous view of a 2.8% expansion.
Wednesday’s approval brings payments within the $44 billion program to a total $40.6 billion already sent to the country.
“‘The fund said following a recent devaluation and “exchange rate realignment’, the new policies should ‘continue to secure reserve accumulation goals’.”
Deutsche Welle reported:
“The loan supports the new government of President Javier Milei, which is implementing massive austerity measures to get the country’s ailing economy back on track.
‘The new administration is taking bold actions to restore macroeconomic stability and begin to address long-standing impediments to growth’, IMF chief Kristalina Georgieva said in a statement announcing the disbursement.
[…] The IMF announcement came on the same day that Argentina’s lower house of Congress began what is expected to be a marathon debate on Milei’s mega-bill to reform the economy, politics and even some aspects of private life.”