The economist arrives on time to be responsible for controlling, supervising, and executing the new version of the Extended Facilities agreement that officials from the Ministry of Economy are negotiating at this time (and in its final stage) and are discussing (sometimes heatedly) at headquarters of the agency in Washington.
Since yesterday a new stage began in the International Monetary Fund (IMF)which will mark the future of the relationship between the country and the financial organization managed by Kristalina Georgieva. Chilean Rodrigo Valdés formally took over as managing director for the Western Hemisphere, replacing Brazilian Ilan Goldfajn and who, due to geographical luck and bureaucratic administration of the Fund, will be in charge of the electric chair of handling the Argentine cause. Valdés arrives on time to be responsible for controlling, supervising, and executing the new version of the Extended Facilities agreement that officials from the Ministry of Economy are negotiating at this time (and in its final stage) and are discussing (sometimes heatedly) at the headquarters of the agency in Washington.
Beyond the terms discussed in these sessions, Argentina could speculate that the future relationship with the IMF and the validity of the treaty is executed with greater flexibilities than until last week. And with a climate of better understanding of the local economic reality. And that although we should not expect radical changes in terms of the general rules for the Argentine case (always controversial and with chronic critics within the IMF staff), something that also depends exclusively on what the Board of the organization decides, at least will have interlocutors more predisposed and prepared to understand the Creole reality. In other words, what an Argentine government could commit to achieve the signed goals. And what not. At least this was the expectation that was born after finding out who was the next managing director for the Western Hemisphere, who formally replaces the Brazilian Ilan Goldfajn, already established as head of the Inter-American Development Bank (IDB) and his interim, English Nigel Chalk.
At the beginning of March, Georgieva herself was the one who had announced that the one chosen for the strategic position, which has, for example, all of Latin America in custody; It was the Chilean Rodrigo Valdés. Former Minister of Finance from the time of Michelle Bachelet and very knowledgeable about the political, economic, financial and exchange reality of the country.
But, fundamentally, what Argentina can expect with the arrival of the Chilean economist from the ranks of MIT in Boston, is a somewhat more structuralist and broad vision of the real policies that the country can apply to achieve the goals committed to the IMF. Specifically, he is not a person with whom goal flexibilities can be discussed. But the possibility of accepting flexible gradualisms and understandings on complex measures such as the lack of speed in the lifting of exchange restrictions or financial movements of exchanges or changes in debt portfolios; something that scared Chalk and his people away.
Valdés demonstrated throughout his career as a civil servant and in his visits to the country (several on duty in Chile and later as a lecturer) showing a great deal of understanding towards Argentina, and elaborated on the idea of thinking the best for the country beyond what the Fund’s books and regulations indicate and require. It remains to be seen if these concerns can be displayed on the rigid shelves of the organization. But the truth is that, at least, one can expect a personality more willing to listen to arguments and find negotiated paths rather than applying the classic recipes that come from Washington. Meanwhile, negotiations between Argentine officials and the IMF continue to unblock the restructuring of the Extended Facilities agreement has been virtually suspended since last Wednesday, when the Ministry of Economy began to use foreign currency to stop the currency run in the dollar markets of the MEP and CCL. Since Friday, Vice Minister Gabriel Rubinstein, the head of Treasury advisers Leonardo Madcur and the person in charge of relations with international organizations Marco Lavagna have been negotiating (virtually). On the other side, the person in charge of the Argentine case, Luis Cubeddu, is discussing. And, if all goes well, the number two of the IMF, Gita Gopinath, will appear on the scene; the delegate of the Fund to close the final agreement with Argentina, as she was the person who earned the trust of the Joe Biden administration to negotiate with the country. The deputy managing director of the IMF closed a good relationship with Sergio Massa in the last meetings that both held, and they managed to certify mutual trust in various conversations via WhatsApp. Now, with the treatment of the agreement in its final stage, Gopinath is expected to bring out her negotiating spirit and speed up the closing of the discussions. In reality, everything will then depend on Gopinath and her negotiating spirit. If there is an agreement, it will be Valdés who has to control what is signed.
Source: Ambito
