News Brief No. 00/101

News Brief: IMF's Köhler Supports Strengthening of Argentina's Program

November 10, 2000

Horst Köhler, Managing Director of the International Monetary Fund (IMF), welcomed the steps announced tonight by President Fernando del la Rúa to strengthen the Argentine economic program. In commenting on the announcements the Managing Director said:

"The steps announced by President de la Rúa tonight demonstrate strong leadership and represent both a significant strengthening of Argentina's economic policy framework and further evidence of Argentina's commitment to the policy approach it has successfully followed for over a decade. These steps should also give new momentum to a growth-oriented policy. Rapid implementation of these steps, in particular agreement on a fiscal pact between the federal government and the provinces, would help assure the sustainability of Argentina's fiscal position, and, together with additional financial support from the international financial institutions, should also improve Argentina's access to capital markets.

"Negotiations with Argentina will continue and could be completed relatively quickly. When agreement is reached, IMF management would be prepared to recommend to the Executive Board that Argentina draw on its current precautionary stand-by arrangement with the Fund, and that further financial support be made available to Argentina, including under the Supplemental Reserve Facility (SRF), in support of Argentina's strengthened economic policies.

"Argentina has also been discussing the strengthening of its economic program with the World Bank and the Inter-American Development Bank. These institutions will be making separate announcements shortly," Köhler said.