Argentina move up bailout timetable
The economy in Argentina has recently faced real difficulty as the value of the Argentine Peso continues to fall. At the same time the country has experienced one of the worst droughts on record, resulting in poor agricultural exports whilst raising the price of essential foods and supplies.
With Argentina experiencing the largest drop in GDP since 2014, investors have lost confidence in a possible return to form, pulling vast amounts out of an already fragile economy. To plug the gap, President Mauricio Macri has asked the IMF to accelerate its emergency package, which had previously been agreed to roll out over the next 36-months.
In new plans released today, up to US$50bn in credit will become available to use as early as January next year, with an aim to stabilise the budget giving the country room to breathe. The International Monetary Fund (IMF) have been working closely with the Argentine government to ensure a quick recovery.
Managing director of the IMF, Christine Lagarde, says there is genuine confidence in the financial plan put in place. It’s an important project for the IMF, as the amount represents one of the biggest in the fund’s history.
Speaking to the press in New York, Ms Lagarde stated: "A great deal of work remains to be done if Argentina is to respond effectively to the current challenging circumstances. That effort is just beginning.
"The IMF is committed to continue supporting the Argentine authorities in their efforts."
Argentina will be keen to avoid the hyperinflation currently crippling the government in Venezuela, and the pressure is certainly on to make the most of this gift from the IMF. If a strong budget can be implemented, the Argentine people will soon see brighter days.