Although there are more than two weeks left until his inauguration, the first days after being elected Javier Milei assumed the geopolitical responsibilities of Argentina. In that context, he had his first contact with Kristalina Georgievaholder of International Monetary Fund (IMF)the main foreign creditor of our country.
The conversation was made official by the president-elect himself, who made a publication on his X social network account: “Today I had a excellent conversation with the director of the IMF, Kristalina Georgieva, in which we discuss the great economic challenge facing our country. I told him about different aspects of our fiscal adjustment plan and our monetary program. “The Fund was collaborative to find the structural solutions that Argentina needs.”
Social networks were also the space in which Georgieva He congratulated the libertarian leader after the results of the elections in our country were known. “Congratulations to the president-elect Javier Milei. We look forward to working closely with him and his administration in the coming period,” wrote the head of the IMFwhich aimed to “develop and implement a solid plan to safeguard macroeconomic stability and strengthen the inclusive growth for all Argentines“.
Javier Milei’s plan with the IMF
The next expiration of the country with the International Monetary Fund is in December for a total of US$900 million. With the Bookings of the central bank (BCRA) in all-time lowsone of the concerns of the next government will surely be how to face these debt maturities from here until the next thick harvestthat starts between March and April 2024.
Beyond that, and the need for Argentina of renegotiate the agreement with the IMF, Javier Milei gave radio statements where he maintained that his intention is “refloat the agreement” which, as he explained, is down because the primary deficit target It was 1.9 units and, during the last period, the primary deficit was reached 3 points.
In this framework, part of the libertarian’s economic team – among which would have been the future Chief of Staff, Nicolas Posse– held conversations with Fund officials via video call to raise the issue removal of monetary restrictions and the exchange rate unification still official exchange rate close to $650.
In those same communications, those around the future president had highlighted their intention to privatize at least some 20 public companiesamong which were mentioned Aysa, Aerolíneas Argentinas, YPF, Impsa, Arsat, state media and public train companies.
Debt with IMF: upcoming maturities
After payments made to IMF in October and Novemberwhich added some US$3.4 billionArgentina must cancel between December and April 2024 debt maturities in foreign currency for almost US$12,000 million.
Between December and Februarythe Treasury must cancel expirations by more than US$6.2 billionof which US$3.7 billion are payments to the IMF, US$1,000 million will be allocated to other international credit organizations and ones US$1.5 billion are in concept of public titles.
It is also worth mentioning that in the coming years, according to Ecolatina, between 2024 and 2026 the Government will have to face maturities for more than US$53,000 million (excluding Non-Transferable Letters, Letters of Guarantee and Guarantees), which is equivalent to more than US$17.8 billion on average per year.
Source: Ambito
