The spokesman for International Monetary Fund (IMF), Gerry Ricewarned that the conflict in Ukraine will affect the program agreed with Argentina, and pointed out that the political and social support in the country to the new agreement between the two parties “will be critical”.
In reference to the difficulties that the agreement has gone through in the Argentine Congress of Deputies, in addition to the criticism and lack of support from the vice president’s sector Cristina Fernandez de Kirchnerthe Washington-based body stressed that “broad political and social support in Argentina would be essential for the overall success of the economic program.”
The declarations take place the same day in which the Senate of the South American country prepares to approve the agreement with the Fund. An agreement that, according to Rice, assumes “challenging” objectives due to the current international situation.
Some of these objectives go through reducing high inflation, reducing the fiscal deficit and a new framework for monetary policy. However, Rice has warned that undertaking this program “will be a challenging task in light of the evolving global environment, as rising commodity prices are affecting inflation around the world.”
“Argentina, like other emerging economies, is already being affected by the war in Ukraine, including the increase in world prices of raw materials that is already affecting inflation,” the spokesman detailed.
In this regard, the representative of the IMF He assured that the IMF is evaluating the possible global impact of economic growth, as well as in the external and fiscal balances. “There are great uncertainties, which depend on the duration of the conflict,” she added.
On the other hand, Rice pointed out that there is currently no date for when the executive director will meet to definitively approve the program, once it is approved by the Senate this afternoon.