“The IMF will carry out quarterly revisions to see how the plan we presented is coming along,” Guido Sandleris of Argentinean finance ministry told the local Radio Mitre.
He added that the recent lowering of the Argentinean economy’s GDP projection, initially set at 3 percent, was not due to the IMF agreement but due to internal and external reasons.
“Firstly, there is the drought that made the countryside suffer. Secondly, international volatility and the third factor was the rise in oil prices. These three things led us to believe growth would be less than projected at the beginning of the year,” explained Sandleris.
He indicated that the agreement signed with the IMF on Thursday expects greater growth in the years to come, as well as a reduction in inflation.
Concerning the continued rise of the U.S. dollar, the official said, “It was not worrying” as the “exchange rate will continue to float.”
The IMF loan to Argentina will last 36 months and will be paid in installments, beginning on June 20. The first share will see Argentina receive 30 percent of the total, or around 15 billion U.S. dollars.
One of the components imposed by the IMF is to see Argentina’s primary fiscal deficit reduced to 1.3 percent of GDP by 2019 and for accounts to be balanced in 2020.
Furthermore, it has demanded greater autonomy for the Central Bank of Argentina (BCRA).
Other conditions placed by the IMF on Argentina in exchange for the credit line include preventing the central bank from further monetizing the country’s deficit.