International Monetary Fund (IMF) spokesperson Julie Kozack criticized the measures the Argentine government has taken to compensate for August’s devaluation in a press briefing on Thursday.

“The recently adopted measures and announcements add to Argentina’s challenges,” Kozack said. “We are working to better understand and assess the impact of the recent measures, and the need for offsetting actions that could be taken to strengthen stability and safeguard program objectives while not adding to future vulnerabilities,” she said.

The government carried out a devaluation that took the official exchange rate to AR$350 on August 14 following protracted negotiations between the lender and the Argentine government. 

The following week the government started to announce “compensatory measures”, including a VAT refund for basic goods and credits with preferential interest rates. On Tuesday, Economy Minister Sergio Massa announced the latest measures, a series of bonuses and tax reliefs for workers and the unemployed.

The Herald reached out to the Economy Ministry about Kozack’s remarks, but they chose not to comment.

Kozack also answered a question about far-right libertarian candidate Javier Milei’s flagship proposal of abolishing the Central Bank and dollarizing the economy. She said that determining an exchange rate is the prerogative of every country, but added that it’s important to assure their “long-term viability.”

“Dollarization requires important preparatory steps and it is not a substitute for sound macroeconomic policies,” she said.

Kozack also assessed Argentina’s social and economic situation, saying that “reserve buffers are low and social conditions are fragile.” She also said that the devaluation, along with tight monetary and fiscal policies, is an “essential component of the program.” Massa has consistently held the IMF responsible for “imposing” August’s devaluation.

Asked about the next review of the IMF-sanctioned economic program, Kozack said it was “too early to speculate on [its] precise timing”. 

“As I noted, of course, it’s in our interest and the interest of our membership to continue to engage and work closely with Argentina,” she said.