IMF approves transfer of US$800 million to Argentina

The Executive Board of the IMF (International Monetary Fund) announced this Thursday (June 13, 2024) the approval of the immediate transfer of US$800 million to Argentina. The agreement came after the 8th review of the financial assistance program for the country.

The disbursement aims to help Argentina consolidate disinflation, rebuild fiscal and external reserves and maintain the country’s economic recovery trajectory. Here is the full agreement (PDF – 167 kB).

In a statement, the IMF highlighted the fulfillment by President Javier Milei’s government of all quantitative performance criteria until the end of March 2024.

“Upon completing the assessment, the Executive Board assessed that the program was firmly on track, with all quantitative performance criteria by the end of March 2024 met with margins,” said the note from the international financial entity.

The IMF Executive Board also mentioned the need for Argentina to improve the quality of fiscal adjustment and adopt measures for a more effective monetary and exchange rate policy.

Furthermore, the implementation of structural reforms was indicated as essential to boost growth, formal employment and investment. The review also approved non-compliance waivers for new exchange restrictions and multi-currency practices.

However, the IMF cited the importance of the Argentine government’s continued efforts towards its population and expanding political support for the government, which has been facing protests from citizens.

Bus Law

This Thursday (June 13), the Senate approved the “Bus Law”, under demonstrations in front of the country’s Congress. The text includes a controversial delegation of legislative powers to the Presidency of the Republic, privatizations, investment incentives and a mini labor reform.

While senators debated the bill, protesters and security agents clashed outside.

At least 3 deputies from Unión por La Patria – former president Alberto Fernández’s coalition – who were among the protesters were hospitalized with eye burns after being hit by police with tear gas. They are: Eduardo Valdés, Luis Basterra and Juan Manuel Pedrini.

I post no X (former Twitter), Milei’s office congratulated the security forces “for his excellent action in repressing terrorist groups with sticks, stones and even grenades who tried to carry out a coup d’état, attacking the functioning of Congress”.