IMF releases fourth tranche of loan amounting to $ 10,800 million

"The income corresponding to the fourth installment of the" Stand By "credit has been registered with the IMF for an amount equivalent to US $ 10,835 million", reported the monetary authority.

The summary of the financial variables prepared by the entity chaired by Guido Sandleris showed that "The change in currencies against the dollar, foreign securities and other financial instruments included in the reserves showed a positive balance of US $ 33 million".

Finally, a payment was made for transactions made via the SML system for US $ 3 million; and there was no involvement of the BCRA in the foreign exchange market.

Last Friday, the IMF Board approved the disbursement of US $ 10,835 million for Argentina, following the third review of the confirmation agreement in force since June 20, 2018, while warning against the inflation levels.

Christine Lagarde, the managing director of the IMF, said that "The policies of the authorities that support the agreement supported by the IMF are bearing fruit".

"High fiscal and current account deficits – two major vulnerabilities that led to the financial crisis last year – are declining, economic activity has contracted in 2018, but there are signs that recession has bottomed out and a gradual recovery is expected in the coming quarters ", Lagarde expressed.

He also stated that "The Argentine government has shown its determination to ensure that the ratio of public debt to GDP is on a sustainable path, thus reducing the primary deficit of 2018 below the target set in the program".

Meanwhile, the IMF said today that "Argentina's economy is expected to decline in the first half of 2019 due to slower domestic demand, due to tighter policies to reduce imbalances, and is expected to recover in the second half of the year as they recover. Real disposable income and agricultural production after last year's drought.

Regarding the rest of Argentina's macroeconomic indicators, the Fund expects inflation of 30.5%, which is why it has been considered essential to achieve the zero deficit this year. "strengthen investor confidence and sustainable growth."