- The IMF Executive Board completed today the fifth and six reviews of Argentina's 30-month Extended Fund Facility (EFF). The Board's decision enables an immediate disbursement of around US$7.5 billion.
- Since completion of the fourth review, key program targets were missed reflecting the historic drought along with policy slippages. Against the backdrop of high inflation and rising balance of payments pressures, agreement was reached on a new policy package centered on rebuilding reserves and enhancing fiscal order.
- Continued strong policy implementation will be critical in the period ahead to safeguard stability and strengthen medium-term sustainability.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) completed today the fifth and six reviews of the extended arrangement under the Extended Fund Facility (EFF) for Argentina. The Board's decision enables an immediate disbursement of around US$7.5 billion (SDR 5.5 billion), bringing total disbursements under the arrangement to about US$36 billion.[1]The next review is scheduled for November 2023.
In completing the combined reviews, the Executive Board assessed that key program targets were missed through end-June 2023 on account of the historic drought along with policy slippages, requiring the approval of waivers of nonobservance. In addition, the Board approved waivers of non-observance associated with the introduction of temporary measures that gave rise to introduction or intensification of exchange restrictions and multiple currency practices. Modifications to the reserve accumulation target, as well as to the primary fiscal balance and monetary financing of the deficit targets, were also approved alongside a commitment to implement a new policy package to correct policy setbacks, safeguard stability, and secure program objectives.
Full press release to follow later.
[1]Argentina's 30-month EFF arrangement, with access of SDR 31.914 billion (equivalent to around US$44 billion, or about 1000 percent of quota), was approved on March 25, 2022 (see Press Release No. 22/89).
