IMF Promotes Argentina prioritization of social support amid financial reforms
Date
2/26/2024 2:04:58 AM
(MENAFN) In a recent interview with "La Nacion" magazine, Gita Gopinath, Deputy Director of the International Monetary Fund (IMF), underscored the necessity for Argentine President Javier Mele to guarantee social assistance to vulnerable groups amidst the country's ambitious economic reforms. The IMF, which maintains a $44 billion loan program with Argentina, expressed concern over the potential adverse impacts of the government's liberal economic policies, including substantial budget cuts and currency devaluation, particularly on the poorest segments of society.
During her visit to Argentina, Gopinath engaged with President Mele and his administration, along with economic experts and representatives from social organizations advocating for increased state aid. The IMF emphasized the importance of striking a balance between fiscal austerity measures and safeguarding social welfare programs to prevent further exacerbation of poverty levels.
Since assuming office, President Mele's government has pursued a course of drastic economic restructuring, marked by significant currency devaluation, price liberalization, deregulation, and stringent budgetary measures aimed at achieving a zero budget deficit amidst soaring inflation rates. However, with over half of Argentina's population living below the poverty line, concerns have mounted regarding the potential humanitarian implications of these reforms.
Gopinath emphasized the critical need to preserve the purchasing power of pensions and social assistance benefits amidst the country's staggering inflation rates, which currently stand at 254 percent. The IMF's stance underscores the imperative for Argentina to adopt a holistic approach to economic reform that prioritizes social protection mechanisms, ensuring that the burden of austerity measures does not disproportionately impact the most vulnerable members of society.
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