The Argentine President, Alberto Fernandezwelcomed this Friday the parliamentary approval of the agreement with the International Monetary Fund (IMF) and considered that it will contribute to the fight against inflation, one of the highest in the world.
“It has been a historic moment, for the first time the refinancing of a debt with the IMF is discussed and approved in Congress,” Fernández said in a recorded message from the Olivos residence in which he announced measures against inflation that exceeds the 50% annual.
“Never again will a president be able to borrow behind the back of the Argentines,” the president remarked. The Senate approved on Thursday the agreement with the IMF for 45,000 million dollars to restructure the program received in 2018 by the liberal Mauricio Macri.
Fernández announced the creation of a “stabilization fund” for prices to decouple them from international prices when a strong increase in commodities is registered in the world as an impact of the war between russia and ukraine.
Argentina recorded a 4.7% rise in the consumer price index in February with a 7.5% rise in the food category, which brought year-on-year inflation to 52.3%, one of the highest in the world.
“Inflation is a historical phenomenon in Argentina, almost a curse,” he said.
The president summoned all the economic and social sectors to a work table to face “a recurrent alley from which it seems impossible to get out.”
“The agreement with the IMF allows us to start ordering the central macroeconomic variables in the fight against inflation,” he considered.
He also maintained that it will help “Argentina to have more reserves and calm devaluation expectations.”
For its entry into force, the agreement endorsed in the Argentine parliament must now be approved by the IMF board in Washington.