As this newspaper assured yesterday, This does not imply that the approval of the goals for the January-March period is in doubt, but rather that the mission will be complicated in terms of the conclusions that the auditors pass in writing.. From Buenos Aires, a certain understanding was expected from Washington regarding the possibility of discussing the goals, something that was made clear in the mission these days that it will not be possible to happen. And that had already been publicly expressed by the only person who could alter the situation: the managing director for the Western Hemisphere, Ilan Goldfajn.
Goldfajn had already explicitly left Martín Guzmán the official position of the IMF during the spring meeting last April; when he publicly declared: “In the program there are hypotheses and objectives. And inflation is one of the assumptions. The objectives are fiscal and monetary, the monetary financing of the deficit, structural objectives, all these are the goals” and that “of course the assumptions can change as a consequence of a new macroeconomic context caused by the global economy, new shocks”, recalling that there is a close antecedent in the program signed and approved by Ecuador. The Brazilian-Israeli clarified that “the assumptions are used to prepare the program”, while the goals are “fiscal, reserves, structural”.
In this sense, Goldfajn was emphatic in stating that “these will not be changed because what we (the IMF) have to do is help the authorities prioritize measures to meet these objectives.”
As this medium mentioned yesterday, Goldfajn wants to know how Argentina will meet the commitment of a fiscal deficit of 2.5% of GDP, accumulate US$4.8 billion of liquid reserves and a controlled level of no more than 30% of monetary issue deficit. The Brazilian-Israeli asked his two envoys to audit the Argentine accounts, the North American Julie Kozack and the Venezuelan Luis Cubeddu, to immerse themselves in the projections of the most important variables of the Argentine economy, to verify if the committed projections are still “on-track”. He does not mean that the mission will not be approved, but rather that the IMF wants to make clear to the leaders of the Ministry of Economy the agency’s future doubts.
Source: Ambito
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