The former Minister of Economy welcomed the fact that the current Treasury official supports the request to eliminate the interest surcharges charged by the IMF for the renegotiation of the debt, although he questioned whether it was precisely Caputo who went into debt with the organization during the Macri administration.
After the repercussions that the meeting of Luis Caputo with the owner of the IMF, Kristalina Georgievathe Minister of Economy of Alberto Fernández’s administration, Martin Guzmanhighlighted the official’s position on the renegotiation of the debt, by insisting on the elimination of surcharges.
The economist emphasized in the discussion to eliminate interest surcharges, one of the most sensitive points that he pushed during his debt negotiation: “It is very important that Argentina continues to support the request to reduce the interest surcharges charged by the IMFand our country is paying for it as a result of the enormous debt that was assumed by the Macri government with Caputo as Finance Minister. We are close to achieving this. In this, Luis Caputo is defending the interests of the Argentines.“.
“Finally, Caputo stressed the need to continue advancing discussions on the review of surcharge policies at the IMF Board and stressed the importance of generating relief from the financial burden of countries that are affected by these additional interests,” added the former Minister of Economy in a post on the social network X.
Despite criticism for the return to the IMF, Guzmán highlighted the position of the current minister, which could imply the preservation of US$1,100 in reserves in the national banking system. The former official reiterated this request to the IMF even at the end of his administration, which led to him being the protagonist of a Conference at the Vatican with Pope Franciswho considered that “we are facing a debt crisis that mainly affects countries in the southern part of the world.”
Martin Guzman and Pope Francis Vatican debt conference June 6, 2024
After an initial resistance from the body, the IMF Communications Director Julie Kozackacknowledged this month that “they are studying the surcharges.” At a conference, Kozack added that there is “an examination on this issue that is underway now in the board,” and that later the financial entity “may offer reviews of current policy”.
Javier Milei assured that the agreement with the IMF will be ready before the end of the year
From Paris, Javier Milei He stated this Friday that He is confident that the agreement with the International Monetary Fund (IMF) will be closed before the end of the year.The president responded ”surely”when asked by Bloomberg News on the possible agreement, while leaving the meeting with Emmanuel Macron.
Milei’s administration considers it key to reach a new agreement, since it would be the way to Lift capital controls, return to international markets and get the recession-prone economy back on trackThey hope to replace the current $44 billion IMF program with a new program that could include more money.
Milei Karina Macron
The IMF is coming expressing his confidence Argentina’s economic trajectory but insists on a more flexible exchange rate, which is currently well below monthly inflation due to government currency controls, leading economists to say the peso has become overvalued.
There is speculation in the market that The new agreement with the Fund should release at least US$ 10 billion in fresh fundsto allow Argentina to lift the exchange rate restrictions in the first quarter of 2025.
Source: Ambito
