Before the end of the week and before Christine Lagarde stops directing the International Monetary Fund (IMF), it is estimated that the technical mission of the international organization will approve the fourth revision of the Argentine economy that will allow a new disbursement of US $5.5 billion.
Lagarde herself, when she met with President Mauricio Macri in the framework of the G20 in Japan, beyond reiterating the Fund’s support for the economic stabilization program in Argentina said that “the Argentine authorities and the technical team of the Fund are close to concluding their talks about the fourth revision of the stand-by agreement and I hope to present it to our Executive Board very soon.”
This Thursday is a holiday in the United States for Independence Day and that is why it is estimated that on Friday the decision of the IMF mission in Argentina would be known.
This is the third review of the economic evolution of Argentina under the stand-by agreement that allowed the IMF to turn around $10.8 billion, reaching the total disbursements up to that date of $38.9 billion.
On that occasion, Lagarde said that “the IMF-backed agreement is bearing fruit” while stressing that “the high fiscal and current account deficits are declining.”
Through a statement, he said the activity was showing “indications that the recession has hit bottom, and a gradual recovery is expected in the coming quarters.” However, he warned that ” inflation remains high; inflationary expectations are rising and inflationary inertia is difficult to fail.”
These three aspects in this review are showing better results and that is why a “go-ahead” is ruled out in the new IMF report on the country.