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Wednesday, December 19th, 2018

ARGENTINE PRES MACRI OPTIMISTIC ABOUT ECONOMY WITH NEW BUDGET, IMF DEAL

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by September 9, 2018 General

After weeks of market volatility and depreciation of the Argentine peso against the U.S. dollar, Argentine President Mauricio Macri said he was optimistic about the economy following a new budget and a 50-billion-U.S.-dollar International Monetary Fund (IMF) agreement.

During a press conference in the western city of Mendoza, Macri said the tax announced earlier in the week will “generate the necessary resources that Argentina needs in order to have calm and certainty” in the coming year’s budget.

He also praised the “maturity” Argentinians have shown in facing the crisis, saying the leaders had “collaborated and acted responsibly and independently, regardless of their political leanings.”

On Monday, the president had announced new austerity measures, including large-scale spending cuts and a temporary tax on the export of raw materials, to eliminate the chronic fiscal deficit.

The budget for next year is expected to go to the Congress for approval in the coming weeks.

The peso began to appreciate this week after Economy Minister Nicolas Dujovne began talks with the IMF director in Washington on Tuesday.

Argentina signed a 50-billion-dollar standby deal with the IMF in June and is now seeking early disbursements of the financial package.

The peso began its climb against the dollar on Wednesday and on Friday reached the level of 37.6 pesos to 1 dollar from its worst 40 pesos during the volatility.

Source: NAM NEWS NETWORK

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