IMF Says Needs Further Discussions With Argentina On Support Program - UrduPoint

The International Monetary Fund (IMF) and Argentina need to take additional discussions on fund-supported programs to help the country's economy, the IMF mission said in a statement on Friday.

"While further discussions are needed, the IMF team and the Argentine authorities remain fully committed to their collective work on a framework and policies for an IMF-supported program," the statement read.

IMF and Argentine delegations held meetings in Washington, DC on December 5-10. They analyzed recent economic developments and discussed inflation forecasts, as well as the country's balance of payments.

"The teams acknowledged the stronger-than-expected rebound in economic activity and investment this year, and the importance of a policy framework to durably sustain the economic recovery and improvements in social and employment conditions," the statement said.

Both parties acknowledged a general understanding on the need to gradually and sustainably improve public finances. They also noted the importance of allowing for much-needed infrastructure, technology, and targeted social spending.

IMF encouraged Buenos Aires to impose appropriate monetary policy with positive real interest rates, and wage-price coordination to address inflation and other issues.

"This also needs to be supported by policies to build international reserves, including by encouraging foreign direct investment and exports, which grew very robustly this year, especially in value-added sectors," the statement said.

The two parties underscored the necessity of the broad support of those measures both inside Argentina and within the international community, the statement added.