Argentina Will Stick to IMF Targets to Reduce Budget Deficit

Argentina will stick to a deal with the International Monetary Fund to gradually reduce the country’s budget deficit amid a surge in inflation, the country’s top economic official said on Monday, WSJ Pro Bankruptcy reported. Economy Minister Sergio Massa met with IMF Managing Director Kristalina Georgieva in Washington, D.C., and they said the IMF’s program with Argentina would remain unchanged. Ms. Georgieva said she welcomed Mr. Massa’s “strong commitment and drive to achieve the goals of the program.” Mr. Massa, a leading member of Argentina’s ruling Peronist coalition who took over as minister in July in the midst of an economic crisis, said in a recent interview that he is focused on fiscal stability, increasing central bank reserves and boosting exports. “We know we have an enormous challenge of recovering investor and market confidence in Argentina,” Mr. Massa said. Argentina reached a deal with the IMF earlier this year to refinance a $44 billion bailout to avert a debt default and currency meltdown. The country initially took on the bailout during the previous administration of center-right President Mauricio Macri. Under current President Alberto Fernández, Argentina agreed to reduce the fiscal deficit and trim energy subsidies in exchange for pushing back the debt payments to the IMF. Read more. (Subscription required.)