| Summary: | This paper presents Argentina’s Fourth Review under the Extended Arrangement under the Extended Fund Facility (EFF), Requests for Modification of Performance Criteria, Waiver for Nonobservance of Performance Criteria, and Financing Assurances Review. Achieving the 2023 primary fiscal deficit target of 1.9 percent of gross domestic product remains essential to support disinflation and reserve accumulation, alleviate financing pressures, and strengthen debt sustainability. Timely implementation of high-quality measures, particularly improving the targeting of energy subsidies and social assistance, will help offset lower export taxes due to the drought, protect priority infrastructure and social spending, and secure the fiscal targets. “Real interest rates should remain sufficiently positive to tackle high inflation and support demand for peso assets. On the domestic financing front, prudent efforts will be needed to mitigate near-term rollover risks and mobilize net financing, while limiting the build-up of vulnerabilities and protecting debt sustainability.
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