IMF BOARD APPROVES US$800 MILLION DISBURSEMENT TO ARGENTINA FOR ECONOMIC STABILITY

MOSCOW, June 14 (Bernama-Sputnik) -- The IMF Executive Board has concluded the eighth review of Argentina's extended arrangement under the Extended Fund Facility, paving the way for a $800 million disbursement aimed at restoring economic stability.

However, the Board urged Buenos Aires to prioritise support for vulnerable populations and maintain nimble policymaking, reported Sputnik.

"The Board's decision allows for an immediate drawing of approximately US$800 million (or SDR600 million), bringing the total disbursements under the arrangement to about US$41.4 billion," the IMF said in a statement on Thursday.

The IMF recommended that Argentina improve "the quality of fiscal adjustment" and take "initial steps towards an enhanced monetary and FX [foreign exchange] policy framework," as well as implement "reforms to unlock growth, formal employment, and investment," the statement read.

"Continued efforts to support the vulnerable, broaden political support, and ensure agile policymaking will also be necessary," the IMF added.

Earlier in the day, the Argentine National Institute of Statistics and Censuses said the monthly inflation rate in the country slowed to 4.2 per cent in May, having gained 71.9 per cent since the beginning of the year, while annual inflation totalled 276.4 per cent.

In June 2018, the IMF approved a US$50 billion stand-by loan for Argentina to help the country reduce its budget deficit amid soaring inflation. In October, the fund agreed to increase the size of the financing program to US$56.3 billion. However, the deal was renegotiated in 2021 to US$44 billion.

--BERNAMA-SPUTNIK