31 July 2001, 06:35 Argentina fiscal tightening should strengthen confidence - IMF's Koehler
WASHINGTON (AFX) - A package of measures approved by Argentina's
legislature yesterday to eliminate the country's fiscal deficit should
strengthen confidence levels in the economy's prospects, said IMF
Managing Director Horst Koehler.
"Decisive implementation of these measures should help greatly to
stabilize the macroeconomic situation and to strengthen confidence,"
Koehler said in a statement.
The Argentine Senate yesterday approved the broad outlines of the
government's zero-deficit bill.
Senators will now debate the package's individual clauses, which
they are authorised to amend.
Any amendments would be sent back for ratification to the lower
house, which voted the austerity plan through last week.
Passage in the Senate "demonstrates the political unity behind
Argentina's commitment to fiscal discipline," Koehler said.
The IMF Managing Director also noted that an IMF mission is
currently in Argentina.
Press reports have said Argentina will this week seek advance
disbursements from the 40 bln usd, IMF-led assistance package, to avert
any danger of a debt default.
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