IMF welcomes Argentina reform steps ahead of end-June visit

Audio By Carbonatix

Enlarge

LONDON (Reuters) -The International Monetary Fund said on Thursday that it welcomed recent measures taken by Argentina’s central bank and finance ministry ahead of a visit by the Fund to the country later in June.

Argentina’s central bank rolled out a broad package of economic measures on Monday to boost reserves, including an up to $2 billion repurchase agreement. The steps are part of President Javier Milei’s ‘Phase 3’ economic plan, which includes easing monetary controls, floating the peso, and cleaning up the central bank’s balance sheet.

“We welcome the recent measures announced this week…they represent another important step in efforts to consolidate disinflation, support the government’s financing strategy and to rebuild reserves,” said Julie Kozack, Director of the IMF’s Communications Department during a media briefing.

“The Treasury’s successful re entry into capital markets and other actions to mobilize financing for Argentina are also expected to boost reserves and stability overall.”

Kozack said the IMF team continued to engage “frequently and constructively” with Argentine authorities as part of the program’s first review of the recently agreed $20 billion loan agreement.

To this end, a technical mission was due to visit Buenos Aires in late June, Kozack added, to assess progress on program targets and objectives, and to also discuss the authorities’ forward-looking reform agenda.

“More broadly and despite the more challenging environment, the authorities, as I said, have continued to make very notable and impressive progress.”

(Reporting by Karin Strohecker and David Lawder; Editing by Kirsten Donovan)