Publication of March inflation indexvariation of global rates and exchange tension: That is the scenario in which the main officials of the Ministry of Economyheaded by Luis Caputo and minutes after a meeting in ROSADA HOUSE WITH JAVIER MILEI, They decided to announce a new agreement with the International Monetary Fund (IMF).
Minutes later spread the beginning of a new phase of financial management, which includes the application of a system of exchange bands and the Blend dollar elimination and exchange rate since Mondaythe Minister of Economy stated that the announcement implies that “we will conclude stage 3 of the economic program.” “The first was to end the fiscal deficit; the second was to end the fiscal fiscal deficit and monetary issuance; and the third was the recapitalization of the Central Bank,” he said.
The consolidation of the economic program will have the financial support of a new Extended fund ease (EFF) agreed with the IMF by $ 20,000 million, of which $ 15,000 million constitute disbursements of free availability in 2025. “That allows you to have a healthier currency and accelerate the disinflation process,” he said Caputowho stressed the announcement of End of stock: “So much damage has done. It was put in 2019 and limits the normal functioning of the economy.”
Then he said that “There are going to be $ 12,000 million that will go immediately, on Tuesday, April 15 “and there will be “U $ 2,000 million more that will be entering the next two months“. On the other hand, others will be received U $ 3,600 of international organizations and a sum of U $ 2,000 million of a repo that will specify the BCRA. “Immediate disbursements constitute US $ 19.6 billion that will be supporting the reserves from Tuesday to the next 60 days“Caputo clarified and stressed that there will be other US $ 3,500 million in 2025 (US $ 1,500 of the IMF and the rest of other organisms).
“Finish the exchange rate within this macroeconomic context of fiscal and monetary order It will inevitably generate that investments begin to enter today that Argentina gave this new stage And he can end the exchange restrictions, “said the official and said that these possible investments” will generate a growth consolidation we are already seeing. “
After presenting the economic team that worked behind the agreement, Caputo highlighted Javier Milei’s role: “For his leadership, his generosity, his courage And because every time I work more with him more admiration generates me. “
According to the IMF
Likewise, the minister recalled that The agreement held by Argentina with the IMF was renegotiated because “refloating that agreement was equivalent to entering a hyperinflation. We told the IMF that we were going to carry out our own program, with how challenging it may seem, and that they evaluated, to the extent that we met our goals from here to a few months, if they could join this project and help us in this new stage. “
“We faced our own program, knowing that it was extremely challenging and that the possibilities of falling into crisis were 90%,” he admitted and added that “the reality is that We made this adjustment and popularity is still intact“He added.” Argentina was a bad student because he always had the messy macro, mainly in the fiscal level, “he said and understood that since he assumed the new management.”There was a program that was very well orchestrated. “
After presenting the economic indices of his administration, he said that “The prior to convertibility was much more manageable than the one inherited by President Javier Milei. It was practically a amusement park: there was no inflation. “” That solution could not come out; He went out with a crisis. Now let’s see the results of leaving a crisis or a good economic program, “he contrasted.
“We will continue with our program. […] The fund is tremendously surprised by the results we achieved, “he said and affirmed – despite the daily sales that the agency supports – that the government had been recapitizing the Central Bank and that “eight months ago we have the exchange scheme closed with the IMF.” “The agreement was not closed before because […] The level of optimal reserves that the BCRA needed to support He gave us a $ 20,000 million number and we knew that this number to the IMF was going to make noise“
Among the negotiations, the minister indicated that he was raised a new economic objective: “That 1.3% of primary surplus that we had as a goal, this year we will take it to 1.6%. We are going to make a greater fiscal effort in an electoral year “. “There is no need to do this, but it seems to us the best way to strengthen Argentines. We must have maximum fiscal and monetary orthodoxy,” he concluded.
Source: Ambito
