IMF Says Argentina’s Spending Adds Risks to $44 Billion Deal
- Fund is assessing impact of Massa’s pre-election spending
- It says dollarization is no substitute for sound macro policy
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A public spending boom and generous tax cuts carried out by Argentina’s Economy Minister Sergio Massa, who’s also running for president in the October election, pose new setbacks to the country’s $44 billion program with the International Monetary Fund, according to the Washington-based lender.
“The recently adopted policy measures and announcements add to Argentina’s challenges,” IMF chief spokesperson Julie Kozack said at a press conference in Washington Thursday. “The economic situation remains very challenging and complex.”