The International Monetary Fund (IMF) considered “Welcome” to the latest measures announced this week by the Ministry of Economy and the Central Bank (BCRA) because “They represent another important step in efforts to consolidate disinflation, support the government financing strategy and rebuild reserves.” This was stated by the spokeswoman of the organism, Julie Kozack, Within the framework of a press conference offered Thursday in Washington. He also said that At the end of June a technical mission will come to the country.
After reiterating what was said in previous statements that: “Milei administration policies continue to evolve and show impressive results,” Kozack pondered the latest measures taken by economic conduction. Highlighted “more specifically, the steps to strengthen the monetary framework and improve liquidity management. ”CHeaven that “These are important to reduce inflation and inflation expectations further.”
He also remarked “The return of the Treasury to capital markets and other actions to mobilize financing for Argentina” with the expectation of improving reserves.
In general, he evaluated that “Stability in the country remains supported by the implementation of a strong fiscal anchor.”
He added that the fund team “continues to be frequently and constructively involved with the Argentine authorities as part of the first review of the program.” In this regard, he said that a technical mission will visit Buenos Aires at the end of June “To evaluate progress in the goals and objectives of the program, and also to discuss the reform agenda expected of the authorities.”
He concluded his reference to Argentina by stating that “Despite the most challenging environment, the authorities, as I said, have continued to make very notable and impressive progress.”
Reservations
After signing a credit agreement for $ 20,000 million earlier this year, Argentina has been complying with almost all the requirements stipulated with the IMF. In certain goals with excess, as is the case of the fiscal result.
“We had agreed to a 1.3% surplus of GDP (for the current year) and we will end up and we pushed ourselves to 1.6%,” The Deputy Minister of Economy said on Tuesday, José Luis Dazatogether with the head of the Palace of Finance, Luis Caputoand the president of the Central Bank (BCRA), Santiago Bausilliwithin the framework of a program on a channel of streaming.
On the other hand, in market sources it is said that the objective of accumulation of reserves is not being achieved. The agreement contemplates that the BCRA increases at about 4.4 billion dollars these assets before the first review.
At the beginning of the week a bank report was known Morgan Stanley. The entity holds That, if there are no new Bonte emissions before June 13, that is, the deadline for the first IMF review, Argentina will probably be about 3,000 million dollars below the target.
On the subject, and in the same streaming programCaputo said “we constantly talk to the background (monetary) and they are very happy With how the program works. It is a goal (the reservation) that we propose to comply“. Then the minister clarified that “Reservations in different ways can be accumulated“
“The issue of reservations accumulation It does not have the level of importance that I had a few months agosince today we are with a floating exchange rate and a capitalized central bank, “he added.” Both the downward inflation and the accumulation of reserves are two obvious consequences that are going to be given. “
Precisely with the purpose of strengthening reservations, among other objectives, the BCRA announced on Monday at the last minute a series of measures, among which was the call to a second tender for its “Resto” program with international banks. This operation was carried out with seven international banks last Wednesday, for 2,000 million dollars and two years. It was channeled with ‘Bopreal’ Series 1-D titles, with an equivalent to annual fixed rate of 8.25%.
Days ago, Government placed a 2030 bonus that caught 1,000 million dollars, which passed to the BCRA reserves. This modality will continue, the BCRA reported, with more short -term amortizations, always through peso placements and subscriptions in foreign currency.
In this way, Official driving appeals to indebtedness to rebuild currency reserves, instead of obtaining them by buying the dollar the commercial surplus, How would they prefer market operators for considering it a safer mechanism in order to face future external commitments.
However, it is recognized that this path would possibly lead to an increase in the exchange rate and it is considered that The Treasury Palace is prioritizing the stability of the dollar to ensure the deceleration of the price index -Today, May inflation data will be known, which would be less than 2%, according to transcended.
In the Ministry of Economy they celebrate that the country can return to the international credit market. In this regard, Caputo affirmed “the agreement with the fund included access to international markets next year. Given the way in which the economic program is being executed and evolving, We saw that there was a possibility to access international markets before what we had scheduled with the fund. This was a very important topic for the IMF“
Source: Ambito
