After her multiple meetings in the country, the deputy managing director of the IMF, Gita Gopinath, supported adjustment measures carried out by the Government of Javier Milei but marked as “essential” let them be done “sustained efforts to support vulnerable segments.” He spoke about the need to generate political agreements.
The number two of the multilateral credit organization ended her agenda this Thursday night at the Argentina, where he met with the president Milei, the Minister of Economy, Luis Caputo, high-level officials of the national administration, representatives of civil organizations and leaders of the CGT.
“I had an excellent first visit to Buenos Aires. In recent days I have been able to learn more about the progress that is being made, but also about the difficulties that the Argentine people face,” she said first of all, the number two of Kristalina Georgieva in a statement released by the IMF.
“I heard first-hand from a wide range of stakeholders, who shared their ideas on how to address the country’s challenges and harness its vast potential,” he added.
Gopinath supported Milei but asked to serve the vulnerable sectors
When referring to the measures applied by the new government, Gopinath highlighted “the important efforts to restore macroeconomic stability by establishing a strong fiscal anchor” and considered that the initial measures “are beginning to bear fruit, although the road ahead remains complicated.”
Regarding the present difficulties, the American economist stated that “a consistent and well-communicated monetary and exchange rate policy will be necessary.” to continue reducing inflation in a lasting manner, rebuild reserves and strengthen credibility.”
Next, Gopinath was not unaware of the impact of adjustment on vulnerable classes by pointing out “the stabilization costs in the short term”, so he considered that It is “essential” to make “sustained efforts to support vulnerable segments of the population and preserve the real value of social assistance and pensions.”
The deputy director of the organization pointed out that The Government must ensure “that the burden of adjustment does not fall disproportionately on working families.”
The IMF asked Milei to guarantee social and political support
In addition, the economist took note of the president’s difficulties Javier Milei to politically negotiate their reform projects and asked him to “work pragmatically to generate social and political support”something he considered as “fundamental” for “the durability and effectiveness” of the transformations.
The economist held meetings this Thursday with representatives of the private sector, with whom she discussed market reforms, and with the Secretary of International Relations of the CGT, Gerardo Martínez, who warned him about the increase in poverty as a result of the measures promoted by Milei.
Gopinath He stated that during the multiple meetings he held with non-governmental actors they expressed the need to advance with the reforms but also take into account the effects of the adjustment. “Similar messages were echoed in my conversations with academics, labor, civil society organizations and private sector companies. There was broad recognition that Argentina needs reforms market-oriented to reverse a long-term decline in living standards, but that these must be designed and sequenced to guarantee sustained and inclusive growth,” he said.
At the same time, he highlighted the general agreement that Argentina “has tremendous human potential, as well as unique opportunities in energy, mining and technology.”
“My team and I look forward to continuing to work closely with the president Milei and his team to support his efforts to restore stability and strengthen growth in benefit of all Argentines. “I am grateful for the warm hospitality I received on my first visit to this beautiful country,” she concluded.
Source: Ambito
