In a continued effort by the IMF to negotiate terms of a bailout for the South American country, it has gone on to offer yet another endorsement in accordance to the Argentine government’s economic reform plan.
Along with emphasizing on the importance of maintaining social consensus as the government further tightens its fiscal alterations following a run on the currency ruined by nearly a fifth of the peso’s value in recent weeks, Christine Lagarde, the IMF’s managing director, went on to state that President Mauricio Macri will have “complete ownership.”
The statement given by Ms. Lagarde reads as follows: “This will be Argentina’s economic program, one that has full ownership of President Macri and his government.”
Also in an effort to strengthen President Macri’s “gradualist” economic programme, M.s Lagarde made sure to inform the fund’s executive board of Argentina’s request for a “standby arrangement.”
Mr. Macri’s aim of achieving Equitable and sustained growth in order to gain back market confidence with a macroeconomic program specifically targeted at plummeting financing needs and public debt has been “completely endorsed” by the IMF.
Ms. Lagarde specifically highlighted President Macri’s initiative of “ protecting the society’s most vulnerable during this transition.”
The statement comes in wake of the recent concerns in Argentina in which harsh conditions would be imposed on loans by the IMF, that would most likely affect the popularity of the market-friendly Mr. Macri, who has been touted by the majority of Argentine citizens to run for re-election next year.
The IMF was held responsible by many locals for the 2001-02 economic crisis, surprisingly even back then, the President at that time, Néstor Kirchner severed Argentina’s ties with IMF for more than a decade, a move which went on to be described as a very famous one.
Mr. Macri’s extraordinary efforts to reform Argentina’s economy ever since he took charge back in December 2015 were hugely praised by Ms. Lagarde.
A brief translation of her statement reads as follows: “ No doubt, there have been quite a few policies that have moved quickly, in spite of that the government has been well aware of the need to grow and maintain social consensus in calibrating the pace of their reform efforts, that includes fiscal adjustment. It was quite a known fact that such an approach would indeed come with certain vulnerabilities,” she further added that the South American country is now undoubtedly facing “significant financial volatility”.