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Economy Mission travels to the US to close the eighth review with the IMF

Economy Mission travels to the US to close the eighth review with the IMF

This Monday, a mission headed by the Secretary of Finance, Pablo Quirno, and the vice president of the Central Bank, Ivan Werning, leaves for Washington with the purpose of advancing the eighth review of the agreement that Argentina has with the International Monetary Fund.

Unlike what happened historically, the country exceeded goals agreed with the multilateral organization in the first quarter of the year, from which it is considered that will obtain a disbursement of about US$800 million.

The Minister of Economy, Luis “Toto” Caputo will not be part of the meetings returning this Tuesday with President Javier Milei.

It is estimated that, by usual procedures, Towards the end of next week the approval of the Fund could be announced with the consequent authorization of the transfer of resources.

At the Treasury Palace they trust in a quick resolution by virtue of compliance, in excess, by the country of all the objectives agreed with the IMF. The organization particularly highlighted the achievement of a financial surplus (after interest payments) something that had not been achieved in decades.

At the end of last month, technicians from the Fund came to Argentina to advance with the next review of the program approved during the government of Alberto Fernandez.

Referring to this mission, the agency noted that the objective of the Fund remains to support the authorities’ ongoing efforts to restore macroeconomic stability, support working families and lay the foundation for stronger, more sustainable growth.

Advances

In recent statements, both the IMF and the US Treasury Department praised the “impressive” progress made in the first months of the president’s administration Javier Mileiin particular the decline in inflation more pronounced than originally expected and the accumulation of reserves.

But these messages also made it clear that there is still work to be done to finish outlining the economic program and get the country out of a deep, multi-year economic crisis. When he visited the country weeks ago, Gita Gopinaththe number two of the Fund, in addition to praising the efforts of the official leadership to get the economy back on track, asked “continue efforts to protect the most vulnerable during a difficult stabilization process”.

For its part, Rodrigo Valdesdirector of the Department of the Western Hemisphere, recently stated that the conversations between the Government and the Fund are focused on improve the “quality and durability” of fiscal adjustment, and how adapt monetary policy to reinforce the fall in inflation and the accumulation of reserves.

Although the Argentine authorities also praise the “constructive” relationship they maintain with the Fund, they do not fail to comment on the Ministry of Economy that, Despite the overachievement of goals, “the Fund continues to become demanding”.

Source: Ambito

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