The IMF said that it sees good progress in talks with Argentina Thursday (June 7) for an agreement to provide financial support to the South American country.
“This will be an economic plan driven by the Argentine government's priorities, with a particular focus on protecting the most vulnerable and strengthening the local economy in light of that financial market turbulence,” IMF Spokesman Gerry Rice told reporters.
The IMF is working with Argentine authorities to shore up the countries financial system after it was hit by drought, currency devaluation and rising interest rates that battered investor confidence.
The agreement will be aimed at maintaining social protections while at the same time boosting market confidence and giving time for reform measures by President Mauricio Macri.
Rice also addressed weeklong unrest in Jordan tied to economic difficulties and political turmoil that has seen large street protests.
The IMF supports reform measures and particularly a more inclusive and wider progressive tax program that will more evenly distribute the burden of bringing in much needed funds. Just a small percentage of the population currently pays any direct taxes at all.
“There is a genuine concern for the social dimension. For this it's critical that the benefits and costs of reforms are balanced across all sectors of the economy with a greater focus on those with the capacity to pay while protecting the most vulnerable,” Rice said.
He also pointed out that Jordan has faced economic hardship from an extraordinary influx of refugees from the conflict engulfing its neighbor Syria.
“Recent events also underscore the need for the international community including regional donors to shoulder more of the burdens of Jordan's hosting of over a million Syrian refugees and providing security in the region all of which have placed extraordinary strains on Jordan's public finances. That’s why the IMF has repeatedly urged the international community to help Jordan with much needed and indeed increased financial support preferably in the form of grants,” said Rice.
A full copy of this briefing is posted on IMF.org.