₦airaland Forum

Washington, DC: The Executive Board of the International Monetary Fund (IMF) approved today a 48-month extended arrangement under the Extended Fund Facility (EFF) for Argentina amounting to SDR 15.267 billion (equivalent to about US$20 billion, or 479 percent of quota). The Executive Board’s decision allows the authorities an immediate disbursement of SDR 9.2 billion, equivalent to about US$12 billion, to be followed by a first review planned for June 2025 with an associated disbursement of about US$2 billion. The new arrangement follows a request by the Argentine authorities for medium-term balance of payments assistance to support the next phase of their stabilization and reform agenda. The program is expected to catalyze further official financing from multilateral sources —notably from the World Bank Group and IDB—and bilateral sources, and seeks to facilitate a timely return to international capital markets.

The authorities’ IMF-supported program aims to consolidate the impressive initial gains from recent policy efforts—anchored by strong fiscal and monetary adjustment and deregulation efforts—while addressing Argentina’s remaining macroeconomic vulnerabilities. The program supports a path toward entrenching macroeconomic stability, strengthening external sustainability, and laying the foundation for stronger and more resilient growth.

Key pillars of the program include maintaining a strong fiscal anchor, transitioning towards a more robust monetary and FX regime, with greater exchange rate flexibility in the context of a gradual easing of FX restrictions, and advancing a broad range of structural reforms to foster a more dynamic, market-oriented economy. Continued steadfast policy implementation and strong contingency planning will be critical to secure program success, especially given elevated and rising global risks.

Following the Executive Board discussion, Ms. Kristalina Georgieva, Managing Director and Chair, made the following statement:

“The Argentine authorities’ decisive implementation of their stabilization plan, centered on a strong fiscal anchor and broad structural reforms, has yielded rapid disinflation, a solid economic recovery, and incipient improvements in social indicators. Despite this early progress, Argentina continues to face vulnerabilities and structural challenges, including limited external buffers to address elevated and rising global risks as well as impediments to strong and sustainable growth.

“Against this backdrop, the authorities are embarking on a new phase of their stabilization plan, supported by a four-year Extended Arrangement under the IMF’s Extended Fund Facility to entrench macroeconomic stability, strengthen external viability, and secure a timely re-access to international capital markets. Policy priorities center on (i) sustaining the strong fiscal anchor; (ii) facilitating an immediate transition toward a more robust monetary and FX policy framework; and (iii) deepening reforms to create a more open and market-based economy.

“Building on the authorities’ commitment to a zero-deficit target and track record of delivering the first fiscal surplus in almost two decades, the program focuses on strengthening the quality and durability of the fiscal anchor. This will be supported by ongoing spending discipline, efficiency measures, and well-sequenced reforms of the tax, revenue sharing, and pension systems. Efforts will continue to provide sufficient fiscal space for priority social assistance and priority infrastructure spending.

“The authorities will transition toward a new FX regime with greater exchange rate flexibility to rebuild external buffers and better manage shocks. This transition is being supported by the establishment of an enhanced monetary targeting framework with strict limits on central net domestic assets to support money demand and disinflation, thereby limiting FX sales. These steps are complemented by a carefully sequenced easing of distortive FX restrictions, combined with prudent macroprudential policies to avoid currency mismatches.

Penguin2:
It’s like the new President’s reforms are not werking like Tinubu’s haphazard reforms in Nigeria 😏

CodeTemplarr:
Old news. So many badly structired n run nations on earth.

LegendHero:
This is from IMF website. It is today news

Penguin2:
It’s like the new President’s reforms are not werking like Tinubu’s haphazard reforms in Nigeria 😏

CodeTemplarr:
Maybe the progeessed with the old news. It has been in news before.

mrvitalis:
No it's working that's why he got the loans

U stabilize your country then go for then loan to use and invest in your people not foolish feel good infrastructure

LegendHero:
Nigeria's reform is working; we're just waiting for inflation to come down as the policy germinate fully.

The Naira has stabilized between 1500 and 1600 over the past year—if not for the current Trump issue, it wouldn’t be edging toward 1600.

Argentina, on the other hand, hasn’t had any relief. The IMF cited their FX instability as one of the reasons for requesting a loan.

mrvitalis:
How would inflation come down when you are not investing in production

How would inflation come down when businesses get interest rate at 40%

You defended Buhari useless policies... You are defending Tinubu policy that has wiped 40% of our GDP...

Of Tinubu wins and APC rules in 2031 you would be over 46 year old defending the failure policy again

LegendHero:
Lol 😂

So why are they wanting to use the money to stabilize their FX policy?

How many years more before they burn the money and go back and collect another loan to stabilize again?

LegendHero:
What is your definition of investing in production? Is Dangote refinery not an example of production?

Abi you just found the word “production” on the floor them run with it.

How many years does it take to build a fully functioning plant? Do Steel facilities just spring up in one year?

mrvitalis:
U need money to stabilize FX... That's basic economics na... Was that not what we have been saying...

You really have no understanding of the money market

Exchange rate means nothing in economics stability of exchange rate is the Koko

You devalue to a price u can tightly defend for 18 months minimum this build confidence and stabilize exchange to do this u need bulk loan

Why am I even wasting my time with you

LegendHero:
We have argued this 500 times and everytime we go into argument you eventually run away. I don’t have time to waste on a topic we’ve discussed a thousand time.

@your bold statement. If exchange rate stability is the key, then why are you not praising Tinubu? Our exchange rate has been stable for the past 1 year.

mrvitalis:
I run away what ?
APC has been doing what you are saying since 2015 how has the economy been?.
575 billion dollars to 199 billion dollars

PDP did what I said partially for 16 years moved economy from 59 billion dollars to 575 billion dollars

Yet you want me to waste Rome to argue with you? Nah don't have that time

LegendHero:
Stop saying nonsense. PDP did nothing, hoe many production facilities PDP built.

That GDP is quoted in USD. What Jonathan did was just to use the huge FX reserve he inherited to defend dollar and burn the reserve finish until crude oil price fell in 2015.

That was why Nigeria economy collapsed when crude oil price collapsed in 2015. Even Okonjo admitted they we are headed for doom.

That GDP was not due to any useless production of PDP but just quoted value of defended FX.

Now tell us production aside crude and high oil price Jonathan did better than APC

Penguin2:
It’s like the new President’s reforms are not werking like Tinubu’s haphazard reforms in Nigeria 😏

mrvitalis:
Asking how many industry PDP built shows you don't know how development works

Government have no business in business you support businesses

PDP creates billionaires in dollars APC have created zero

Did OBJ meet any reserve?



Music sector grew under PDP
Movie
Cenima
Telecom
Insurance
Banking
Aviation

Name one industry APC has improved since 2015

LegendHero:
Stop saying nonsense. PDP did nothing, hoe many production facilities PDP built.

That GDP is quoted in USD. What Jonathan did was just to use the huge FX reserve he inherited to defend dollar and burn the reserve finish until crude oil price fell in 2015.

That was why Nigeria economy collapsed when crude oil price collapsed in 2015. Even Okonjo admitted they we are headed for doom.

That GDP was not due to any useless production of PDP but just quoted value of defended FX.

Now tell us production aside crude and high oil price Jonathan did better than APC

nairalanda1:
Pdp did not build up our active industrial export possibilities. Neither did they improve power supply, and the decline of the refineries continued apace

You can argue with me , but strong countries are countries that export industrial goods and services .

India has a great movie industry. It also has a lot of dirt poor people


I did not say apc or tinubu is better. Infact tinubu would have kept subsidy if not that his advisers had told him there was no money, and imf was frowning. And our economy has remained oil dependent

nairalanda1:
Pdp did not build up our active industrial export possibilities. Neither did they improve power supply, and the decline of the refineries continued apace

You can argue with me , but strong countries are countries that export industrial goods and services .

India has a great movie industry. It also has a lot of dirt poor people


I did not say apc or tinubu is better. Infact tinubu would have kept subsidy if not that his advisers had told him there was no money, and imf was frowning. And our economy has remained oil dependent