Georgieva is expected to meet in person with Argentina’s president-elect, Javier Milei, during her visit to Washington on Tuesday.
He International Monetary Fund (IMF) is “very interested” in supporting Argentina and the country could be a candidate to receive financing through its Trust Fund for Resilience and Sustainability (RST, or FFRS), the head of the IMF said on Monday, Kristalina Georgieva.
Georgieva is expected to meet in person with the president-elect of Argentina, Javier Milei, during his visit to Washington on Tuesday. This meeting follows a first virtual meeting between Milei and the IMF on Friday, which Georgieva described as a “very constructive engagement, a very serious discussion.”
“We will see how the commitment goes, but it is a promising first step,” Georgieva told Reuters.
“The most important way Argentina can help itself is by addressing the macroeconomic imbalances that have accumulated. But also, We are very interested in supporting Argentinaaddress the deep problem of inflation, create an environment for private sector-led growth that can boost employment and the broader economy.
Background Trustee for Resilience and Sustainability: what does it consist of
He International Monetary Fund (IMF) created the Resilience and Sustainability Trust Fund (FFRS) to help low- and middle-income countries facing long-term structural risks related to the climate change and the pandemic prevention.
Georgieva was interested in discussing how Argentina could be less vulnerable to climatic phenomena. This would bring an extra dollar income of US$1.3 billion that Javier Milei would need to resolve the “leliqs bomb”, one of the most pressing issues according to his vision.
“They have very important structural problems that the IMF can help them solve, as well as very important adaptation problems,” such as drought, he said.
Javier Milei Kristalina Georgieva IMF.jpeg
Having a program in progress is a precondition to access the IMF adaptation support mechanismwhich was launched to help vulnerable middle-income and island countries and provides access to low-interest loans to around 140 countries.
It was not clear how the possibility of resorting to the ftrust fund for the US$44 billion program of the IMF—the largest International Monetary Fund—, which is considered to have gone off track and will end in September 2024.
Source: Ambito
