During the presidential election campaign in Argentina, it was infuriating to see economist Javier Milei’s mainstream economic theories treated as “radical and dangerous ideas”, while the socialist-Peronists, whose idiotic policies put 40% of the country below the poverty line treated as “the sensible choice”.
So, while I am perhaps not the biggest supporter of the International Monetary Fund (IMF), it is a positive development that they openly and unambiguously support Milei’s heroic fight to rebuild Argentina’s shattered economy.
The IMF has just approved the most recent revision of its $44 billion program with Argentina, allowing for a new payment of $4.7 billion.
The Fund explained that although the programme’s key objectives were achieved up to the end of last year, it approved “waivers for non-compliance”.
Reuters reported:
“‘The objectives of the program have been modified, in line with the authorities’ initial actions and ambitious plans to get the program back on track,’ the fund said.”
The Argentine government and IMF staff have agreed on the seventh review of the program, which was delayed due to the change of government of the Milei administration.
“’The new administration is taking bold actions to restore macroeconomic stability and begin to address long-standing obstacles to growth,’ IMF Managing Director Kristalina Georgieva said in the statement.
He said the “inconsistent policies of the previous government” had left a “difficult legacy”.
How difficult is it? The IMF cut its forecast for Argentina’s GDP in 2024 to a contraction of 2.8% from an earlier forecast of a 2.8% expansion.
Wednesday’s approval brings payments under the $44 billion program to a total of $40.6 billion already sent to the country.
“The fund said that following the recent devaluation and “exchange rate realignment,” the new policies should “continue to deliver reserve accumulation objectives.”
To know more:
Elon Musk praises Argentina Milei’s pro-capitalism speech in Davos and publishes an erotic meme to celebrate it
Deutsche Welle reported:
“The loan supports the new government of President Javier Milei, which is implementing massive austerity measures to get the country’s ailing economy back on track.
“The new administration is taking bold actions to restore macroeconomic stability and begin to address long-standing obstacles to growth,” IMF chief Kristalina Georgieva said in a statement announcing the disbursement.
[…] The IMF announcement came on the same day that the lower house of Argentina’s Congress began what is expected to be a marathon debate on Milei’s mega bill to reform the economy, politics and even some aspects of private life.” .
To know more:
The UK Telegraph comes out in support of Argentinian Javier Milei against the WEF “caste”.