Privatizations and closure of trusts: what the Government agreed with the IMF
Privatizations and closure of trusts: what the Government agreed with the IMF
porEditorial Team
Argentina
The Government and the multilateral organization agreed to move forward with the reduction of the State
The new technical agreement between the Argentine Government and the International Monetary Fund (IMF) advances in key structural reforms, including a plan for privatizations of public companies and the massive closure of trust funds, as part of a state efficiency strategy.
Although these commitments are not binding quantitative targets, the Executive Branch presented them as part of its agenda to be realized this year.
Privatizations with roadmap and transparency
The document published by the IMF staff details that the Government committed to publishing, before mid-November, two essential instruments:
A report on the state-owned companies included in the Ley Bases (Law 27.742), prepared by the State-Owned Companies Transformation Agency, which includes a roadmap for their privatization or concession.
Guidelines to ensure a transparent and efficient process in these operations.
Privatizaciones y cierre de fideicomisos: qué acordó el Gobierno con el FMI
Among the mentioned companies are Energía Argentina, Intercargo, Aysa, Belgrano Cargas, Sofse, Corredores Viales, Nucleoeléctrica Argentina, and Yacimientos Carboníferos Río Turbio. While the Government has already hinted at initiatives for several of these firms, the IMF now demands a more structured and official planning.
"The aim is to improve the efficiency and governance of the public sector," the technical report from the Fund emphasized.
Trust funds: widespread closure, with one exception
The plan also includes the elimination of almost all existing trust funds, except for the one that finances gas subsidies for residential users in cold areas, which will remain operational. This trust fund is sustained through a tariff surcharge recently updated by the Ministry of Economy from 5.44% to 6%, and currently reaches about 4.3 million households.
Privatizaciones y cierre de fideicomisos: qué acordó el Gobierno con el FMI
Since the change of management, the Government closed 18 of the 29 existing trust funds, including the Buenos Aires Fiscal Strengthening Fund, the Social Housing Fund, the Prodaf Program, the Universal Health Coverage Fund, and the Assistance to Victims of Trafficking Fund, among others.
Future reforms and fiscal goals
In addition to these measures, the IMF emphasized the need for additional structural reforms to support the fiscal plan. The goal is to increase the primary surplus from 1.25% of GDP in 2024 to 2.5% in the medium term, supported by spending discipline and administrative efficiency.
Three major reforms are mentioned on the agenda:
Tax reform, with an estimated deadline in December 2025.
