The International Monetary Fund (IMF) has released US$5.4 billion to Argentina as part of the bailout program announced last year, confirming that the South American country’s economy is recovering from recession.
Even inflation is on ‘a downward path’, the bank said in a statement. The international bank releases funds only after reviewing economic activity in the country it loaned. This is the fourth instalment of the bailout package Argentina is receiving.
“The Argentine authorities continue to show a strong commitment to their economic policy program, meeting all applicable targets under the Fund-supported program,” said IMF Managing Director David Lipton in a statement.
“While it has taken time, these policy efforts are starting to bear fruit…… and the economy is beginning a gradual recovery from last year’s recession.”
The bank has stated that inflation is less likely to rise in the near future.
Many in Argentina hate the IMF, because its loan agreements typically include imposition of spending cuts. Soon after signing the bailout agreement, President Mauricio Macri imposed tax on exportation of certain goods and services.
The measures impacted many companies including Accenture, Globant, Neoris, Belatrix, PwC, and IBM, among others. The president had to disband several ministries, and cut subsidies on utilities including transport, gas and electricity, putting his own electoral prospects in risk.
Earlier this year, scientists took to streets in protest against the decision to reduce R&D investment.