IMF Welcomes Approval of Bases Law in Deputies for Pension System Reform but Emphasizes Sustainability and Fairness

The International Monetary Fund (IMF) welcomed the approval of the Bases Law in Deputies on Thursday and expressed its hope for the green light in the Senate. However, the IMF emphasized that any new retirement initiative must enhance the sustainability of the pension system while preserving the fiscal goals of the program.

Julie Kozack, Communications Director at the IMF, stated during a press conference in Washington that the organization’s executive board is still assessing the eighth revision of Argentina’s program. Once approved, this will result in a disbursement of US$ 800 million. Kozack highlighted that while Argentina has met its fiscal, monetary, and reserve accumulation targets, there remains challenges ahead.

The country needs to improve its fiscal measures to ensure sustainability and fairness while protecting vulnerable groups. A monetary and exchange policy is also necessary to anchor inflation, safeguard reserves, and manage market pressures. Additionally, implementing micro-level reforms can promote formal employment and attract private investment.

Kozack also emphasized that expanding political support for macroeconomic stabilization and reform is crucial to Argentina’s success. The IMF welcomed key fiscal and structural legislation passed in the Lower House but awaits consideration by the Senate. Regarding new retirement initiatives proposed by radicalism and Kirchnerism, Kozack reiterated that any new measures must align with fiscal goals outlined in an agreement with the IMF.

The spokesperson acknowledged Argentina’s delicate social situation and emphasized that increasing social assistance without disproportionately burdening working families was essential to supporting poor individuals without jeopardizing economic stability. The IMF commended Argentina’s efforts to enhance social programs and governance while focusing on discussions regarding an eighth review of its program rather than a new plan or financing at this stage.

In conclusion, Kozack underscored that