Washington, DC: An International Monetary Fund (IMF) team, led by Julie Kozack, Deputy Director of the Western Hemisphere Department, and Luis Cubeddu, mission chief for Argentina, issued the following statement today:
“IMF staff and the Argentine authorities have reached an understanding on key policies as part of their ongoing discussions of an IMF-supported program. The main areas of agreement include the following:
“IMF staff and the Argentine authorities have agreed on the fiscal consolidation path that will form a key policy anchor of the program. The agreed fiscal path would gradually and sustainably improve public finances and reduce monetary financing. Importantly, it would also allow for spending increases on infrastructure and science and technology, and would protect targeted social programs. We agreed that a strategy to reduce energy subsidies in a progressive manner will be essential for improving the composition of government spending.
“We have reached understandings on a framework for monetary policy implementation as part of a multipronged approach to addressing persistent high inflation. This framework aims to deliver positive real interest rates to support domestic financing and strengthen stability.
“We have also agreed that additional financial support from Argentina’s international partners would help bolster the country’s external resilience, and its efforts to secure more inclusive and sustainable growth.
“IMF staff and the Argentine authorities will continue their work in the coming weeks towards reaching a Staff-Level Agreement. As is always the case, final agreement on a program arrangement would be subject to approval of the IMF’s Executive Board.”