New IMF $ 10,835 Million Entered Central Bank

The International Monetary Fund (

MFIs

) deposited in the Central Bank's Treasury Account (BCRA) the $ 10 835 million of the fourth
Confirmation Agreement (SBA) signed with Argentina. This is the most important payment of the agreement signed with the country and comes after the Fund's warnings on inflation, growth and changes in quarterly fiscal targets.

The arrival of these funds should allow the entry into force of tender calls of $ 60 million per day (about $ 1,200 million per month), which will come into effect at from the middle of this month, the goal being to convert these currencies into pesos for current expenses. However, these dollars, combined with the liquidations of the harvest, would help to give more tranquility to a foreign exchange market in short supply. Offers will arrive until November.

"Revenues for the fourth installment of the Stand By credit were recorded with the International Monetary Fund for an amount equivalent to $ 10,835 million," confirmed the BCRA in its press release to the media. Reserves reached 77,478 million US dollars.

Yes, today in his
A panorama of the world economy, the IMF has affirmed – like the last team report – that Argentina is this year on the podium among the countries that will experience more sustained inflation. The ranking is led by Venezuela, the only country in the world with hyperinflation, followed by Sudan, Zimbabwe, South Sudan, Iran and, later, Argentina, in the sixth row.

IMF staff expect annual inflation to be around 30 percent this year. Last December, the Fund forecast a price increase of 20.2% by 2019, and gross domestic product (GDP) would drop by 1.2. %, a slight improvement over the previous forecast, which forecast a contraction of 1.7%. Economists expect prices to rise 36 percent this year, according to the latest BCRA survey of private consultants.

"The policies of the authorities supporting the IMF-supported agreement are bearing fruit," said the IMF Managing Director.

Christine Lagarde

a statement last Friday after the board meeting that approved the disbursement of 10 835 million US dollars.

"Economic activity has contracted in 2018, but some signs indicate that the recession is at a low and a gradual recovery is expected in the coming quarters, but inflation remains high, the expectations inflationary pressures are rising and inflationary inertia is strengthening, difficult to break, "he warned

He also noted that "the results in terms of inflation have been disappointing" and said that in order to achieve the agreed budgetary objectives in the agreement, it will be "essential" for the government to act with "caution" in Expenditure Execution and Take Action "Increase tax revenue so that the fiscal situation of 2019 reaches the primary balance".

The disbursement approved by the Fund, the first of a more than $ 21 billion mattress that the government expects to receive before the presidential elections in October, will provide crucial support to fund the budget. and keep the peace with the exchange rate during the campaign. , one of Casa Rosada's priorities. The big dollar today dropped nearly 0.70% to settle at $ 43.35. The retailer closed at $ 44.52.