WASHINGTON: The International Monetary Fund (IMF) completed a review on Friday of Argentina’s economic performance, allowing the release of $5.4 billion to the country in a loan program intended to help stabilise its economy.

The IMF board approved the fourth review of the South American country’s performance under the loan deal signed last year.

“The Argentine authorities continue to show a strong commitment to their economic policy program, meeting all applicable targets under the Fund-supported program,” said IMF Managing Director David Lipton in a statement, noting that financial markets have stabilised.

Lipton also said that inflation, while still high, had decreased and appeared to be on an overall downward path.

“The economy is beginning a gradual recovery from last year’s recession,” he said.

Despite the IMF’s confidence, American credit rating agency Moody’s changed Argentina’s outlook on Friday from stable to negative.

Moody’s based its decision on “increased uncertainty” that Argentina would continue to implement policies that would stabilise its economy and its currency, it said in a statement.

President Mauricio Macri has faced increasing pressure over the misfiring economy with presidential elections set for October.

Published in Dawn, July 14th, 2019