The International Monetary Fund has hailed the “impressive” progress made by President Javier Milei since taking office, despite Argentina’s ongoing economic woes.
The remark, delivered by an IMF spokesperson at a press briefing, underlines the strong support from Washington-base lender for Milei’s administration.
The progress made is “impressive”, but “the road to stabilisation is never easy”, said IMF Communications Director, Julie Kozack.
The financial organisation has firmly backed Milei since he took office last December. The La Libertad Avanza leader has vowed to achieve zero deficit this year, though his plan comes at the cost of a sweeping “chainsaw” plan to cut government spending.
Sovereign spread is a country’s cost of incurring foreign debt.
Authorities in argentina are implementing “an ambitious plan of (macro economic) stabilisation”, centered on “a strong fiscal anchor”, which eliminates any government financing on the part of the Central Bank and policies aimed at reducing inflation and rebuilding reserves, but “the road to economic stabilisation is never easy and requires a firm implementation of policies”, the spokesperson said from Washington.
The reforms need “social and political support to guarantee their durability and efficiency”, afirmed the spokesperson.
Public-sector employee unions took to the streets in protests against the dismissal of almost 15.000 state workers.
Milei has refloated a credit programme of US$ 44 billion with the IMF, leading to “active discussions”, according to Kozack, who denied that a new plan was being negotiated.
SOURCE: www.batimes.com.ar