IMF points to FGS | Claimed the sale of shares …

The International Monetary Fund has asked Argentina to implement a "growth-enhancing fiscal adjustment to mitigate debt vulnerabilities". To achieve these goals, the agency does not plan to relax its deficit reduction requirements. The IMF's financial review published yesterday indicates that the country will achieve fiscal balance by reducing energy subsidies and increasing export taxes. Among the instruments listed to achieve the budget goal is the sale of the badets of the ANSES Sustainability Guarantee Fund: "The reduction of the badets of the national pension fund", says the fund document.

When the state regained control of the precious resources contained in the AFJP, the counter-cyclical fund took over all the public values ​​and actions in which the private directors had invested. The omnibus law that launched in 2016 the money laundering, the fiscal moratorium and the pension reform allowed the liquidation of the badets of the FGS to finance the "historical repair" without it being necessary to obtain additional parliamentary authorization. The mechanism was not used, but the sale of these papers was now being considered to facilitate the tax adjustment program.

As part of its annual meetings, the IMF ensures that the mechanism allowing emerging countries facing financial problems to minimize their risks, such as Argentina or Brazil, is to "pursue sanitation budgetary". From the agencies' point of view, it is more important to ensure an adjustment than to maintain the internal market. "Improving the sustainability of public finances is imperative in Argentina and Brazil to limit funding risks, which prevail over demand support," said the Fund's Fiscal Monitor.