World Bank warned of crisis and lending with the IMF

A report from the international body said that the government agreement generates a high cost for economic activity. In addition, he made a difficult diagnosis for 2019.

April 04, 2019

After ordering waiver at MFIs by the government, the world Bank He considered that the budgetary adjustments necessary to carry out the Fund's program generated high costs for the economy. In addition, it projected a further decline in GDP for 2019.

The report says that "Argentina starts 2019 in the middle of a recession and that GDP is expected to fall by 1.3% this year, after a contraction of 2.5% in 2018". The report was broadcast in Washington.

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"The fiscal adjustment needed to comply with the IMF program its price is high in terms of economic activity and the peso has again suffered a setback", Noted the World Bank.

In this regard, the agency said that "the peso has depreciated 66% over the previous year, that inflation has remained close to 50% and that the rate interest rate policy had to be increased above 70% in October "to avoid further depreciation. "

The Board of Directors of the Fund must approve a new disbursement for Argentina on Friday, estimated at USD 10,850 million.