Tosi spoke with Goldman Sachs economist Alberto Ramos at an online event. “We will have to readjust and see the effect of this unexpected global shock on all aspects of the program”he said, referring to the global commodity price shock, in remarks published on Bloomberg.
The official stated that the fiscal targets in the IMF program are the hardest part to meet. “The most challenging part has to do with the fiscal goals due to the complexity of the spending dynamics in Argentina,” Tosi said, mentioning energy subsidies.
The day before, the Fund’s managing director was asked about the most important challenge facing the Argentine program and how she thinks it will be recalibrated in the first review.
Georgieva replied: “We have common goals of having a program that can be successfully implemented and that helps Argentines, so the challenges we face are about implementation.”
He added that “A better implementation must be calibrated by combining the changes in the global economy for Argentina, some of these changes have been positive because the country is an exporter of raw materials.” Regarding the first review of the program, scheduled for early May, Georgieva noted that “it has accelerated so very soon you will be asking our team and the Argentine authorities about the results of the review as it progresses.”
On the other hand, the Undersecretary of Financing said that the prices of Argentine bonds nor they improved with the news of the IMF program because investors want to see results and implementation. Tosi anticipates a “gradual improvement” in bond prices if fiscal targets in the IMF program are met.
And regarding the political sphere, Tosi pointed out that both the ruling coalition and the opposition face internal divisions at this time. “I think we’ve been under different kinds of tensions and different kinds of dialogue within the coalition, but also if you look at what’s going on in the opposition, they also have their own problems because they don’t have, let’s say, a unified vision of how to move forward.”
Source: Ambito
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