Argentina : Ex-post Evaluation of Exceptional Access under the 2022 Extended Fund Facility Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Argentina.

Format:

Book

Government document

Author/Creator:

International Monetary Fund. Western Hemisphere Dept.

Series:

IMF Staff Country Reports; Country Report ; No. 2025/003

IMF Staff Country Reports

Language:

English

Physical Description:

1 online resource (122 pages)

Other Title:

Argentina

Place of Publication:

Washington, D.C. : International Monetary Fund, 2025.

Summary:

This paper analyzes Argentina’s Ex-post Evaluation of Exceptional Access under the 2022 Extended Fund Facility (EFF) Arrangement. The 2022 EFF came about in extremely difficult circumstances. Argentina was unable to regain external viability under the 2018 Stand-By Arrangement and faced large and concentrated repurchase obligations to the IMF. The combination of a gradualist reform strategy, large adverse shocks, and progressively weaker implementation resulted in outcomes substantially worse than in the baseline by end-2023. The program got off to a difficult start, with the surge in global commodity prices due to Russia’s war in Ukraine feeding inflation expectations and creating additional fiscal spending needs that were met through direct and indirect monetization, further fueling inflation. A major course correction subsequently undertaken by the Milei government—notably a sharp fiscal consolidation, an upfront devaluation, and an end to monetary financing of the budget helped Argentina avert a full-blown crisis and make important strides toward macroeconomic stabilization. Overall, the 2022 EFF did not achieve its original macroeconomic objectives, but it was successful in easing the burden of Argentina’s financial obligations to the IMF by rescheduling repayments over 2026–2034, and may have helped Argentina avoid even worse outcomes in 2022–2023.

Notes:

Description based on print version record.

ISBN:

9798400299025