He International Monetary Fund (IMF) confirmed on Friday the approval of a new agreement with the Argentinahe number 23 In its history, for a total of U $20,000 millionwhich includes an immediate first disbursement of US $ 12,000 million. The plan will have a duration of 48 months and will be under the framework of the Expanded IMF service (SAF).
In parallel, the director of the organism, Kristalina Georgievaindicated that the economic team of Javier Milei assumed the commitment to move forward with deep reforms in matters Taxof Copartitioning and of retirement systemas part of Adjustment scheme to consolidate the balance of public accounts.
“The program focuses on reinforce the quality and sustainability of the fiscal anchor“Said Georgieva.” This will be based on a Continuous discipline of spending, efficiency measures and well -sequenced reforms of the tax systems, of co -participation of income and pensions, “he continued.
“They will continue to be done efforts to provide sufficient fiscal margin for priority social assistance and priority expenditure on infrastructure ”.
The agreed economic plan includes a Flexibility of the exchange ratea Primary surplus above the originally planned and the goal of reaching the First positive fiscal balance In almost twenty years. The first technical review of the agreement will be in June 2025when the organism evaluates the possibility of a new disbursement of approximately U $ 2,000 million.
Javier Milei’s message
From the government, Milei a recorded message spread this Friday in which he ratified that The fiscal adjustment will be intensified to achieve a primary result of more than 1.3% of GDP initially projected. “In this sense, although to ensure the zero deficit we need a primary surplus of 1.3% of GDP, in the light of the Recent international eventswe have decided to raise it to 1.6%, ”explained the president.
The president also stated: “The fiscal risk has already eliminated, already eliminated monetary risk and now also eliminating exchange risk, The bases for stability and sustained growth have been settled For medium and long term. From here more the real economy of Argentines will improve in the framework of such stability and grow as never before. ”
The IMF evaluation on Milei’s management
For its part, IMF mentioned as positive the First results of the official planhighlighting the Low of inflationan incipient economic recovery and improvements in some social indicators. However, he warned that the country still faces structural challenges and vulnerabilities that could be aggravated by possible global crises.
“Argentina continues facing vulnerabilities and structural challengesincluding the limitation of external protection mechanisms to face the high and growing global risks, as well as obstacles to solid and sustainable growth, ”Georgieva warned.
The agency also stressed that the authorities have Measures prepared against eventual turbulence International: “Given the global context of high and growing risks, the authorities have contingency plans, which will be complemented with a Agile policy formulation In the context of programs reviews to refine macroeconomic policies as necessary to meet the objectives of the program and restore stability in a lasting way. A clear communication will continue to be imperative, as well as the need to expand social and political support to the ambitious reform program of Argentina ”.
With this new program, the IMF is committed to the country to recover access to International Capital Markets and attract additional financing, both from Fuentes Bilateral as Multilateralthat allow sustaining the economic direction in the medium term.
Luis Caputo talked about the changes in the dollar
The Minister of Economy, Luis Caputo, said that the new government exchange scheme is not a devaluation of the national currency, although he admitted that It is not known “where the exchange rate is going to be parked.”
“Regarding the Devaluation, I would say it is a technical error. This is not a devaluation, it is a flotation ”, Caputo said during the press conference he offered together To Santiago Bausili, the president of the Central Bank in the microcine of the Treasury Palace.
There, and after an extensive introduction in which the official recalled the inheritance received and what the government was doing so far, explained the fundamental elements of the exchange band scheme that will be launched from Monday to replace the fixed exchange rate Adjustable by “Crawling Peg” to 1% monthly.
The head of the Treasury Palace said that between the price of below of the $ 1,000 band and the $ 1,400 ceiling in the team in charge there is no estimate: “Where you are going to park, we don’t know it,” he said.
Caputo recalled that “Last year in July the dollar was worth $ 1,400 and everyone said it would go to $ 1,800 ”. “I remember that I gave a television interview and said that far from spending that, that it was most likely to converge to the official dollar and four months later it was worth $ 1,070 ”, added.
In addition, he stressed that “that was a context in the BCRA had no support”, so he considered that “You have to imagine now that it will happen with a plenty of reservations.”
“The truth is where the dollar is going to be parked, we don’t know it, ”he insisted Caputo, who clarified that “A devaluation is when you are guaranteeing a minimum of exchange rate. ” “We are not doing it. It may be that from here to one year the dollar is worth $ 970 ”, assured.
Source: Ambito
