IMF Managing Director Christine Lagarde Welcomes Argentina Governments Economic Policy Plans

Stocks and Financial Services Press Releases Thursday June 14, 2018 08:43
IMF--14 Jun--International Monetary Fund

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today on the Argentina government's Letter of Intent and Memorandum of Economic Policies requesting a US$50 billion Stand-by Arrangement with the IMF:

"President Macri's government today provided us with the details of their economic plan and their formal request for IMF support for this strong and ambitious effort through its Letter of Intent and Memorandum of Economic Policies. The authorities intend to publish these documents shortly.

"As I have said before, the policy plan underpinning the IMF's financial assistance is owned and designed by the Argentine government, one aimed at strengthening the economy for the benefit of all Argentines.

"The economic targets are meaningful and there is a full articulation of the underlying policies that will help the government achieve its goals. It establishes ambitious medium-term fiscal goals for the federal government and establishes realistic inflation targets that will govern the conduct of monetary policy. These clear policy intentions will help bolster market confidence and address a range of long-standing vulnerabilities.

"The plan will also help reinforce Argentina's institutional framework. For example, it has measures to improve the medium-term budget process and to ensure central bank independence. Importantly, it also discontinues the practice of providing central bank financing of the fiscal deficit, a critical step in the establishment of an independent central bank.

"I particularly welcomed the emphasis placed by President Macri's economic team on supporting the most vulnerable in society. This is accomplished through concrete commitments to preserve the current level of social spending and increased resources for social assistance programs. There is also a pledge to work with other international agencies, like the World Bank and Inter-American Development Bank, to improve the overall design of Argentina's social safety net.

"Further, I was heartened to see President Macri's commitment to improving gender equity in Argentina through changes that correct discrimination in the tax system, steps to provide childcare support for working families, actions to promote equal pay for equal work, and measures to fight gender-based and domestic violence.

"With the clarity provided by the authorities' letter, I judge that the negotiation with IMF staff have been completed satisfactorily and that this economic plan creates a solid basis for the US$50 billion Stand-By Arrangement announced last week as a staff-level agreement pending Executive Board approval (Press Release 18/229). The authorities' have requested that one third of this support be disbursed upon approval of the program and that one-half of that amount (US$7.5 billion) would be made available for budget support.

"With the formal reassurances provided by the Argentine government, today we will issue the Staff Report to the IMF's Executive Board, who will consider Argentina's request formally on June 20. We look forward to helping strengthen the Argentine economy through this financing package."


Latest Press Release

Photo Release: MTS Gold Group: the First Thai Local Broker of CME Group

Dr.Kritcharat Hirunyasiri Chairman of MTS Gold Group, and Mr.Nuttapong Hirunyasiri CEO of MTS Gold Group, together with Mr. Christopher Fix Managing Director, Head of Asia Pacific, CME Group, and Mr. Nicolas Dupuis, Senior Directors, Energy Product,...

Credit Guarantee And Investment Facility #AA/A-1+# Ratings Outlook Remains Stable

SINGAPORE (S&P Global Ratings) June 22, 2018--S&P Global Ratings today affirmed its 'AA' long-term and 'A-1+' short-term issuer credit ratings on the Credit Guarantee and Investment Facility (CGIF). The outlook remains stable. We affirmed the...

Asian Development Bank Ratings Affirmed At #AAA# With Stable Outlook

SINGAPORE (S&P Global Ratings) June 22, 2018--S&P Global Ratings said today that it has affirmed its 'AAA' long-term and 'A-1+' short-term foreign currency issuer credit ratings on the Asian Development Bank (AsDB). The outlook remains stable. We...

GPSC Outlook Revised To Negative On The Proposed Acquisition Of #BBB-# Rating Affirmed

SINGAPORE (S&P Global Ratings) June 22, 2018--S&P Global Ratings revised the outlook on Global Power Synergy Public Co. Ltd. (GPSC) to negative from stable. At the same time, we affirmed our 'BBB-' long-term issuer credit rating on the...

River Funding No. 5 Class 1-FR And 1-VF Notes Assigned #AAA (sf)# Rating

HONG KONG (S&P Global Ratings) June 22, 2018--S&P Global Ratings today assigned its 'AAA (sf)' rating to the class 1-FR and 1-VF notes issued by River Funding No. 5. (see list). The notes are backed by a revolving pool of credit card receivables...

Related Topics