International Monetary Fund (IMF) Spokesperson Julie Kozak said the financial support from the United States strengthens Argentina’s reform and stabilization goals and stressed “the need to accelerate foreign exchange reserve accumulation efforts.”
“While the specific scale and manner of assistance is a bilateral matter between the U.S. and Argentine authorities, we view these efforts as strengthening Argentina’s reform and stabilization goals,” Kozak said at a press conference.
In this sense, he emphasized that “financial support from the United States contributes to the stabilization of the Argentine market and complements the programs supported by the Fund.”
“The recent improvement in market conditions presents an opportunity for the authorities to strengthen macroeconomic policies, strengthen stability and accelerate the accumulation of foreign exchange reserves,” he added.
In this regard, he stressed that “we have emphasized the need to accelerate reserve building efforts to better manage volatility and further strengthen market confidence.”
Regarding Argentina’s reforms, he said: “Annual inflation has fallen dramatically from triple digits last year to around 30% in September. And, importantly, tight fiscal and monetary policies have kept the transmission of recent exchange rate movements relatively limited.”
He considered that “planned structural reforms in the areas of taxes and the labor market are also ultimately necessary to support fiscal sustainability and further improve the conditions for Argentina’s private sector-led growth.”
“We remain committed to supporting Argentina’s stabilization and reform efforts. Strong and sustained implementation, as well as efforts to build consensus around these vital reforms, are critical to sustaining the impressive progress Argentina has made,” he concluded.
About The Author
