Strong International Support for Argentina

The IMF has granted a $50B Stand-by agreement for a 3-year period, while the WB, CAF and IDB have agreed to an extra $5.65B. This means that Argentina does not need to access voluntary capital markets till next year’s Presidential elections. It is expected that the first $15B installment will be disbursed on June the 20th, to replenish Central Bank reserves & provide assistance to the Treasury. Although the final goal is to reduce fiscal deficit -through a reduction in: infrastructure expenses, transfers to Provinces and civil servants’ salaries- the fiscal deficit reduction should foster economic activity in line with lower inflation, spending on social programs will be maintained as a percentage of GDP.