He International Monetary Fund (IMF) He returned to praise the Argentine economic policy, but Avoid giving details of the new agreement that is being negotiated because “Since discussions continue and there have been good advances so far, we want to make sure there is space for staff and authorities to continue these constructive discussions.” He pointed out Julie Kozack Spokeswoman of the agency at a press conference held this Thursday in Washington.
First, Kozack recalled that the managing director, Kristalina Giorgievaafter your meeting with the president Javier Milei Last month, he acknowledged “The tremendous progress of Argentina in the reduction of inflation, the stabilization of the economy, the return to growth and the fact that poverty finally begins to decrease”.
He then said that “We continue to interact constructively with the Argentine authoritiesand recently a mission of the staff visited Buenos Aires to advance the discussions about a new program. ”
He added that “The new program will have as to take advantage of the achievements achieved so far and, at the same time, address the remaining challenges facing the country ”.
Consulted by Scope On whether the next letter of intent was already in its final instances, Kozack did not give details and just indicated that “Constructive and frequent discussions continue, and we will provide more details about the next steps when we have them”. He emphasized that “To sustain the initial advances, there is a shared recognition between the phonus staff and the Argentine authorities about the need to continue adopting a consistent set of fiscal, monetary and exchange policies while reforms are promoted that improve growth. ”
He did not answer whether the agreement will imply fresh funds, the impact of the decline of the “Crawling Peg”, and on Caputo’s statements with respect to the stock and exchange rate.
At the end of last month, an IMF delegation culminated a mission in the country. Normally these types of visits are made when the thick strokes of the agreements between the fund and the countries are agreed and serve to finalize details, according to specialists. As is of rigor, at the end of these negotiations, the agency released a statement where it argued that the dialogue with the Argentine authorities was “Highly constructive and positive”.
“There will be no devaluation for the agreement with the Fund,” said the Minister of Economy, Luis Caputoin journalistic statements made yesterday. The head of the Palace of Finance said that “Nor does it imply that once the agreement leaves the exchange restrictions the next day.”
It should be remembered that, on several occasions, both the president, Javier Milei As the Minister of Economy said that the agreement with the fund must imply the contribution of fresh funds. It is speculated that the figure would range between 12,000 and 15,000 billion dollars.
Caputo, this Wednesday, explained that fresh funds will serve to recapitize the Central Bank (BCRA), but that, to eliminate the stocks, it is necessary to eliminate the surplus of weights and the convergence of the consumer price index to the CRAWLING PEG and international inflation.
“That’s where the agreement with the fund comes that, beyond how the program follows, it will mean an injection of additional funds to meet that third condition (to leave the stocks, that is, to recapitize the Central Bank),” he said Caputo
From the fund the praise to the policy applied by the official administration are repeated. Days ago, and without an apparent reason, the managing director, Kristalina Giorgievapublished on social networks “We started the year 2025 with shocking debates, from the configuration of the future of the IMF in Cambridge to a productive meeting with President Milei and dynamic exchanges on how to boost growth in Davos”.
“The IMF is forced to reach an understanding with Argentina” They maintain in Fuentes close to the multilateral credit agencies and point out more than one reason. On the one hand, they argue that the Argentine government’s decision to carry out a severe fiscal- hardest program than the one proposed by the fund- with favorable results is a valuable background for authorities of the organism that always recommended this type of austerity policies.
Questioning
But they also point out that the IMF situation must also be contemplated in the light of the Vision – Criticism – That Donald Trump’s administration has many of the international organizations. It should be remembered that the president of the United States began his management with his country from the Human Rights Council of the United Nations Organization.
The memorio remember that before the 2008 crisis, In the political circles of Washington, the role of the International Monetary Fund was very questioned, an agency in which the US is the main contributing.
Perhaps in this context and given Trump’s ideological proximity with Milei, Giorgieva’s insistence is explained by highlighting the good relationship he has with the Argentine president.
About Donald Trump
la rise of import tariffs announced by the. Donald Trump administration were other issues raised at the conference given the concern existing for the risks involved in economic growth and Kozack inflation said that the IMF has not yet finished analyzing the impact of these measures.
It was also consulted on the critical position of the United States government in relation to its participation in international organizations. In this regard, the spokeswoman did not issue an opinion, but recalled that the fund is “a global institution” and emphasized that they have a very defined mandate of “sustaining global economic and financial stability to ultimately support growth and employment in the world economy ”. He defended the agency pointing out that “we took our responsibility to serve our (countries) members very, very seriously,” the official concluded.
Source: Ambito
