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.