IMF Backs Argentina's Economic Program and Schedules Next Review for September 21

The International Monetary Fund (IMF) has confirmed that the next technical staff mission for the third review of its agreement with Argentina is scheduled to begin on September 21. During a press conference in Washington, IMF spokesperson Julie Kozack expressed support for the country's economic and financial results, noting that Argentina has achieved two consecutive years of primary fiscal surplus for the first time in 15 years and has reduced inflation to approximately 30 percent. Kozack highlighted that while growth has been largely driven by the energy, mining, and agricultural sectors, both the IMF and Argentine authorities recognize the need to expand these benefits to other areas of the economy.

Addressing concerns regarding rising credit delinquency among households, Kozack stated that the IMF is monitoring the situation but does not consider it a significant risk to financial stability. She noted that household debt remains relatively low at around 8 percent of GDP, which is lower than in many other Latin American countries, and that banks maintain strong capitalization and liquidity with provisions covering over 85 percent of delinquent loans. This statement follows comments from Economy Minister Luis Caputo, who previously indicated that the IMF had not expressed concern regarding credit delinquency.

Reports on the broader economic context vary in emphasis. One center-right source highlighted negative data in manufacturing and construction, noting a 5 percent monthly decline in industry and a 4.6 percent drop in construction for July. This source pointed to a downward revision of GDP growth expectations to 2.1 percent. Another center-right source focused on the specific rise in delinquency rates, citing data from the 1816 consultancy showing household irregularity increasing from 12.77 percent to 12.94 percent in July. Kozack maintained that the IMF's focus remains on the general trajectory and the reforms intended to support long term growth, including proposals to strengthen the independence of the Central Bank.