IMF says Argentina’s targeted adjustments need commitment

WASHINGTON – The International Monetary Fund says Argentina’s fiscal targets set as part of a $50 billion deal are possible but will require commitment by the South American country.

Argentina and the IMF agreed Thursday on a three-year standby financing deal aimed at strengthening the economy.

The government said it would accelerate reductions in the primary fiscal deficit to balance the budget by 2020, and set a new inflation target of 17 per cent for 2019.

IMF Mission Chief for Argentina Roberto Cardarelli said Friday that the measures are “realistic, but require a strong commitment.”

The deal follows a sharp devaluation of Argentina’s currency. But it has brought back bad memories for Argentines who blame the IMF’s policies for the country’s worst economic crisis in 2001.