Preserving Fiscal Goals in Program Implementation: Ensuring Measures Align with Agency Objectives

The International Monetary Fund welcomed the approval of the Bases Law in Deputies on Thursday and expressed its hope for the green light in the Senate. However, the IMF also emphasized that any new retirement initiative must enhance the sustainability of the pension system while preserving the fiscal goals of the program. Communications Director Julie Kozack stated during a press conference in Washington that the executive board of the organization is still assessing the eighth revision of the program with Argentina. Once the technical report submitted by the staff receives approval, it will result in a disbursement of US$ 800 million.

Kozack highlighted that while Argentina has met its fiscal, monetary, and reserve accumulation targets, the path forward remains challenging. The country needs to improve fiscal measures to ensure sustainability and fairness while protecting the most vulnerable. Additionally, a monetary and exchange policy is required to anchor inflation, safeguard reserves, and manage market pressures. The IMF also emphasizes the importance of implementing micro-level reforms that can promote formal employment and attract private investment.

Furthermore, Kozack mentioned the need to expand political support for macroeconomic stabilization and reform. The IMF welcomed the approval of key fiscal and structural legislation in the Lower House and awaits its consideration in the Senate. Regarding the new retirement initiative proposed by radicalism and Kirchnerism, Kozack reiterated that any new measures must align with the fiscal goals outlined in the agreement with the IMF.

The spokesperson also acknowledged the delicate social situation in Argentina and emphasized the importance of increasing social assistance to support the poor without disproportionately burdening working families. The IMF commended the efforts of the authorities to enhance social programs and governance. Kozack clarified that discussions with the authorities are focused on the eighth review of the program and not on a new plan or financing at this stage.

In conclusion, the IMF continues to engage with Argentina to support its economic stability and growth while emphasizing the importance of implementing sustainable reforms.