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Government analyzes renegotiating the agreement with the IMF

Government analyzes renegotiating the agreement with the IMF

In an unusual gesture, the first deputy managing director of the Fund traveled to the country (in what constitutes her first visit to Argentina) and met this Wednesday afternoon with those responsible for the Treasury Palace.

“We receive congratulations for the fiscal result” pointed out a high source to Ambit. It should be remembered that Argentina achieved a financial surplus for the first time in 12 years.

During the meeting, also the agency’s envoy He consulted about the degree of consensus that the severe adjustment plan is having and asked particularly about the attitude of the governorsas this media learned.

In this sense, the Minister of Economy reiterated the firm commitment of the official leadership to achieve fiscal balance (primary and financial). In relation to the base bill (withdrawn by the Executive Branch after the changes introduced in the Deputies), the minister maintained that “the fiscal package (claimed by the provincial governors) will only be presented to Congress if they support us with the base law,” official sources indicate.

Gopinath expressed herself through the social network X (formerly Twitter) where she wrote: ”Delighted to be in Buenos Aires. Had a productive discussion with Minister Caputo, @LuisCaputoAR, Governor Bausili of @BancoCentral_AR and Chief of Staff Posse on the ongoing efforts to restore macroeconomic stability, protect the vulnerable and strengthen growth prospects in Argentina”.

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It should be noted that the markets have been accompanying the decisions of the Treasury Palace – financial dollars operate calmly and the Central Bank continues to buy reserves. However, it is speculated that At some point in the coming weeks, the economic leadership should give more details about its future decisions, particularly how exchange rate policy continues. (today a crawling peg of 2% per month is applied) so as not to affect the flow of foreign currency to exporters.

In this sense, The conversations with the IMF would contemplate the definition of stabilization policies that could be implemented from April.

On the other hand, and although work on the subject has not yet begun, according to what was learned Ambit there is a possibility that later The Government can propose the formulation of a new agreement with the international organization that replaces the one signed at the time by the former Minister of Economy, Martin Guzman.

Gopinath was accompanied by Luis Cubeddudeputy director of the Western Hemisphere department; Ashvin Ahujahead of IMF mission for Argentina; Ben Kelmanson, resident senior representative of the organization in Argentina; and Matthew Jonesadvisor to the first deputy managing director of the Fund.

The Fund’s economist will meet this Thursday with President Javier Milei. Gopinath had previously offered the president to travel to the country, in a show of support for the Argentine program, but Milei responded that he preferred that the meeting take place once the IMF board had approved the seventh review of the agreement (as happened on February 1), according to sources from the Casa Rosada.

On the other hand, it is expected that the organization’s spokesperson, Julie Kozackprovide details on the progress of the Argentine program in the usual press conference that he will offer this Thursday.

Source: Ambito

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