News Brief: IMF Praises Argentine Measures, Sees US$2b Loan Increase
March 13, 1995
IMF Praises Argentine Measures, Sees US$2b Loan
Increase
The Managing Director of the IMF, Michel Camdessus, made the
following statement on Argentina:
"The Argentine authorities today announced fiscal measures aimed
at a substantial strengthening of Argentina's economic program. These
new measures, together with those implemented at the end of February,
are expected to yield some 2 percent of GDP and aim at generating an
overall surplus of A$2 billion, or 0.7 percent of GDP, in 1995 in the
nonfinancial public sector. Combined with projected receipts from
privatization of A$2.4 billion, the surplus would be 1.5 percent of
GDP.
"The IMF management welcomes the strong actions taken by
Argentina. In the context of unsettled international financial
markets, they demonstrate the firm commitment of the authorities to
raise domestic savings, and to maintain fiscal and financial
equilibrium and price stability.
"The authorities' fiscal package has been discussed with the IMF
mission now in Buenos Aires in the context of negotiations of a
program to be supported by a fourth year under the existing US$3.8
billion Extended Arrangement. IMF management expects to submit
Argentina's request for the extension of the current arrangement,
which could be augmented by an amount of about US$2 billion, to the
IMF's Executive Board in the very near future. This would be in
addition to the US$400 million remaining to be disbursed under the
existing arrangement."
IMF EXTERNAL RELATIONS DEPARTMENT
