The executive board of the International Monetary Fund (IMF) concluded on Wednesday that the 2018 credit program with Argentina for 57,000 million dollars, the largest in the history of the institution, “did not meet” its objectives.
“The program did not meet the objectives of restoring confidence in fiscal and external viability and, at the same time, promoting economic growth” in the South American country, the Fund said in a statement.
In 2018, amid an exchange run in Argentina that began in April, then-President Mauricio Macri announced in May that he would seek support from the IMF.
The Fund’s executive board approved in June a 36-month Stand-By Agreement with the Argentine government, which it extended in October, for some 57,000 million dollars, in exchange for a severe fiscal adjustment to balance public accounts.
“The program was aimed at restoring confidence, reducing the balance of payments and fiscal imbalances and reducing inflation,” the IMF said on Wednesday.
According to the agency, the strategy focused on “fiscal and monetary adjustment, combined with specific structural reforms, to catalyze new capital flows.”
But when announcing on Wednesday the evaluation of the loan results, required given the amount of the debt, the IMF indicated that “the program did not meet its objectives, despite important changes in economic policies” in the country. .
“The exchange rate continued to depreciate, increasing inflation and the peso value of public debt, and weakening real income, especially of the poor,” he said.
The agreement, of which only four of the 12 planned reviews were completed, was canceled on July 24, 2020 under the mandate of President Alberto Fernández, Macri’s successor.
By then Argentina had received about $ 44 billion.