The IMF is about to disburse $800 million to Argentina after a crucial agreement

The IMF paves the way to disburse nearly 800 million dollars to Argentina The International Monetary Fund announced an important milestone in its relationship with Argentina on Monday by reaching an agreement on the eighth review of the credit program agreed upon in 2022, which will allow for a disbursement of nearly 800 million dollars to the South American country. This agreement comes in a context marked by the second general strike in Argentina and the controversial economic plan of the ultra-liberal president Javier Milei. The credit program between the IMF and Argentina involves a disbursement of 44 billion dollars over 30 months, in exchange for the country increasing its international reserves and progressively reducing its fiscal deficit. The IMF has expressed satisfaction with the progress made by the Argentine government, highlighting achievements such as the first quarterly fiscal surplus in 16 years, the rapid drop in inflation, and a reduction in sovereign risk. However, these achievements have been accompanied by unpopular measures, such as thousands of layoffs and the erosion of salaries and pensions amidst a deep economic recession. Despite the criticisms, the IMF acknowledges the efforts of the Argentine government to expand social assistance to vulnerable sectors and protect the purchasing power of pensions. Protests in Argentina have been constant since Milei took office in December, implementing a plan of spending cuts that has caused discontent among the population. The IMF has emphasized the importance of continuing to strengthen the disinflation process, rebuild international reserves, and keep the program on track amid this context of social tensions. The disbursement of nearly 800 million dollars is subject to approval by the IMF board in the coming weeks. Although the results have been considered "better than expected," the financial organization insists on the need to continue efforts to improve the quality and fairness of fiscal consolidation, as well as to address the challenges that still persist in the Argentine economy. IMF experts and the Argentine Minister of Economy's team have agreed on goals to continue advancing the necessary reforms, with the aim of achieving balance without net financing from the central bank, reducing subsidies, and strengthening public expenditure control. This agreement represents an important step in the relationship between Argentina and the IMF, although the road to economic and social stability in the country still presents significant challenges that will need to be addressed in the near future.