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the points that concern the IMF

the points that concern the IMF
February 23, 2024 – 09:11

It is worth remembering that the number two of the multilateral credit organization ended its agenda in Argentina this Thursday night.

Telam

The deputy director of International Monetary Fund (IMF), Gita Gopinathhinted at the organization’s support for the measures promoted by the Government of Javier Mileibut asked him to increase efforts in social matters, generate political agreements and a monetary and exchange policy “consistent“.

After his multiple meetings in the country, Gopinath supported the adjustment measures carried out by Milei, but marked as “essential“let them be done”sustained efforts to support vulnerable segments” and stressed the need to generate political agreements.

It is worth remembering that the number two of the multilateral credit organization ended her agenda in Argentina this Thursday night, where she held meetings with President Milei, the Minister of Economy, Luis Caputo, among other actors in the national political and social sphere. .

However, the Indian-American economist noted that after their conversations with academics, unions, civil society organizations, and businessmenthere are certain points of the Milei plan that worry the multilateral organization.

What did Gopinath say?

“The road ahead remains challenging, and A consistent and well-communicated monetary and exchange rate policy will be necessary to continue reducing inflationreconstitute reserves and reinforce credibility”, which would imply that dollarization is not very well regarded by the Washington-based bank of last resort.

Furthermore, it would appear that the Fund foresees a strong social disaster, since it warns that it is necessary to combine efforts in that sense. “Given the short-term stabilization costs, It is essential to sustain efforts to support vulnerable segments of the population and preserve the real value of social assistance and pensions, as well as ensuring that the burden of adjustment does not fall disproportionately on working families. Proceeding pragmatically to ensure social and political support is also essential to guarantee the durability and effectiveness of the reforms.”he added.

“My team and I will continue to work closely with President Milei and his team to support their efforts to restore stability and strengthen growth for the benefit of all Argentines. I appreciate the warm hospitality I have received on my first visit to this beautiful country,” he concluded.

Source: Ambito

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