Argentina: Request for Stand-By Arrangement and Request for Extension of Repurchase Expectations

IMF Staff Country Reports, December 19, 2003

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Good progress has been made in stabilizing the economic and social situation since the crisis.
Fiscal adjustment over a prolonged period will bring the public finances to a sustainable path.
To protect social expenditures and allow higher public investment, a comprehensive tax reform is required.
Strengthening central bank autonomy is essential for the successful implementation of inflation targeting and restructuring of the financial system.
Full cooperation with the multilateral development banks is important to secure necessary program financing, re-establishing sustained growth, and reducing widespread poverty.

Implement a prolonged fiscal adjustment to restore and maintain public finance sustainability.
Design and enact a comprehensive tax reform to:
- Protect social expenditures.
- Create fiscal space for higher public investment.
Strengthen central bank autonomy to enable:
- Successful implementation of inflation targeting.
- Restructuring and stabilization of the financial system.
Engage in full cooperation with multilateral development banks to:
- Secure necessary program financing.
- Support efforts to re-establish sustained growth.
- Reduce widespread poverty.

Subjects: Arrears, Asset and liability management, Banking, Credit, Debt restructuring, Debt service, External debt, Money, Public debt, Sovereign debt restructuring
Keywords: Argentina, Arrears, automobile production, banking restructuring strategy, budget expenditure, CR, Credit, debt, Debt restructuring, Debt service, Europe, Fund credit, ISCR, staff appraisal