“Consistent implementation of IMF-supported measures will be crucial for further progress. With macroeconomic stability strengthening, political efforts need to focus more on reviving structural reform plans. The recent MERCOSUR-EU trade agreement is an important step in this direction. More needs to be done to reshape the tax system; Increase competition in domestic product markets; And to intensify efforts to strengthen governance and fight corruption. These reforms have considerable potential to increase Argentina`s growth potential, create jobs, reduce poverty and improve the standard of living of all Argentines. In a letter to Kristalina Georgieva on Wednesday, Argentine Economy Minister Martin Guzman and Central Bank President Miguel Angel Pesce called for formal talks that would lead to a new program to inherit the “2018 pending 2018 agreement cancelled and derailed.” Tags: argentina, christine lagarde, economy, imf, stand by agreement “The crisis affecting our country today has been deepened by a quick agreement with the IMF in 2018, which was not sustainable and achieved with the back to society,” Guzman tweeted, adding that it was crucial to replant debt maturities with the Fund. Earlier this month, Argentina reached a preliminary agreement with its creditors to restructure some $65 billion in external debt. Bondholders have until August 28 to accept the offer, although all three major creditor groups have backed a deal. In a separate statement, the government said Fernandez had informed Georgieva by phone that a new agreement should focus on economic recovery and solving pressing social problems. “The policies envisaged by the authorities are aimed at addressing long-standing weaknesses, keeping debt sustainable, reducing inflation and promoting growth and job creation, while reducing poverty. The government has already used $15 billion of the original agreement signed in June to eliminate public debt payments, pay regular expenses and, most importantly, try to contain the exchange rate by selling U.S. dollars at auction in the market.
The Executive Board of the International Monetary Fund (IMF) has approved the stand-by agreement with Argentina, signed into law on 26 September by Finance Minister Nicols Dujovne and the Fund`s Managing Director Christine Lagarde. Demian Bio is The Political Staff Of The Bubble. He has also contributed to news sites such as Infobae and Americas Quarterly. Please ask all questions about this title to firstname.lastname@example.org Argentine financial markets were suddenly put under pressure in April due to a combination of factors. A severe drought has led to a sharp decline in agricultural production and export earnings, higher global energy prices and higher U.S. interest rates have worsened global financial conditions. These changes interacted with weaknesses in Argentina`s political path, including significant tax and external funding requirements. These economic forces have been most evident in the form of pressure on the Argentine peso, fear of short-term central bank roll-over markets and an increase in Argentina`s sovereign risk premium.