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The IMF confirmed the agreement and anticipated a reduction in energy subsidies

“IMF staff and Argentine authorities have reached understandings on key policies as part of their ongoing discussions on an IMF-supported program. The main areas of the agreement include the following:

“IMF staff and Argentine authorities have agreed on the fiscal consolidation path that will form a key policy anchor of the program. The agreed fiscal path would gradually and sustainably improve public finances and reduce monetary financing. It is important to note that it would also allow increased spending on infrastructure and science and technology and would protect targeted social programs. We agree that a strategy to progressively reduce energy subsidies will be essential to improve the composition of public spending.

“We have reached an understanding on the framework for the implementation of monetary policy as part of a multi-pronged approach to deal with high and persistent inflation. This framework aims to ensure positive real interest rates to support domestic financing and strengthen stability.

“We have also agreed that additional financial support from Argentina’s international partners would help bolster the country’s external resilience and its efforts to ensure more inclusive and sustainable growth.

“The IMF staff and the Argentine authorities will continue their work in the coming weeks to reach an agreement at the staff level. As is always the case, final agreement on a program agreement would be subject to approval by the IMF Executive Board.”

Source From: Ambito

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