LatinNews Daily - 23 December 2022

* The executive board of the International Monetary Fund (IMF) has announced the completion of a third review of Argentina’s 30-month Extended Fund Facility (EFF) arrangement, which was agreed in March. The board’s decision enables an immediate disbursement of around US$6bn, bringing total disbursements under the arrangement to around US$23.5bn. IMF deputy managing director and acting chair, Gita Gopinath, stated that, “continued decisive policy actions are starting to bear fruit” and that “resolute policy implementation, including tightening of fiscal and monetary policies, is leading to a reduction in inflation as well as improvements in the trade balance and reserve coverage.” However, Gopinath warned that “macroeconomic imbalances persist, and conditions remain fragile”, saying that “exchange restrictions and multiple currency practices should be avoided and unwound as early as conditions permit.” In particular, Gopinath noted that the aim of reducing the primary fiscal deficit to 1.9% of GDP next year while also providing space for priority infrastructure spending would require the “timely implementation of measures” including mobilising revenues, strengthening expenditure controls and improving targeting of energy subsidies and social assistance.

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