“The authorities have formally expressed their interest in moving to a new program and negotiations are underway,” he announced. this thursday Julie Kozack, spokesperson of the multilateral organization, before a consultation of Scopewithin the framework of a press conference held in Washington. To then clarify that “the current SAF Extended Facilities (program) will expire at the end of this year.”
Regarding the two current reviews, the official explained that “It is not uncommon for authorities to let an existing agreement expire without completing all reviews while they are considering moving to a new IMF-backed program.”
As has been happening lately, the Fund once again celebrated the policies carried out by the administration of President Javier Milei. The spokesperson assured that “The Argentine authorities have continued to implement their economic stabilization program, and have achieved impressive results.”
He explained that these results “they include a considerable reduction in inflation, fiscal surplus and an improvement in the coverage of international reserves.”
He also highlighted both the recovery of economic activity and the purchasing power of salaries, “The recovery of activity and real wages is now firmly underway, and growth turned positive in the third quarter of this year,” asserted
Kozack confirmed that the technical teams of the multilateral organization continue working “constructively with the Argentine authorities to build on the progress achieved so far and address remaining challenges.”.
When asked about the fact that Argentina does not have the 2025 Budget approved by Congress, for Kozack this is not a problem and he stressed that the Government continues “implementing its fiscal program with determination and effectiveness. And recent data through the end of November suggests that they now have a primary surplus of around 2% of GDP,” he stressed.
As usual, when a new agreement is being negotiated, he did not provide any details regarding the new agreement since they are “part of the discussions that are ongoing.”
This conference is the Fund’s last of the year as the organization enters a vacation period for the Holidays.
Milei has the support of Trump
Milei Trump in florfida.jpg
This Wednesday, Javier Milei stated that he hopes that Donald Trump’s government will help Argentina achieve a new agreement with the International Monetary Fund. In an interview with the renowned economic newspaper The Wall Street Journal (WSJ)the Argentine president stated that he hopes that the Republican leader will help the country achieve “billions of dollars” in new financing from the multilateral organization.
On her relationship with Trump, Milei He also announced that he hopes to reach a free trade agreement soon. “I think it is highly possible because the United States discovered that we are a trustworthy partner“said the Argentine head of state.
The future president of the first power has repeatedly shown ideological and personal affinity with the Argentine president. Leveraged by Trump’s gestures, Milei seeks to close the new agreement with the IMF that will provide fresh funds for the country, pointing to the exit from the stocks as one of its most important objectives for 2025.
The confidence of the libertarian administration on the role that the IMF will have Once the Republican leader takes office, he is on the rise every day. Last Tuesday, the Minister of Economy, Luis Caputo said that It is expected that the agreement with the financial institution will be renewed in the first months of next year.
“I estimate that for him first semester Next year we are going to reach a new agreement,” said the head of the Treasury Palace. In addition, he highlighted that IMF officials “are amazed” with the performance of the economic plan in Argentina, “just like around the world.”
In that sense, Caputo reiterated that the Government seeks achieve three conditions to lift exchange restrictions: “The first is that inflation converges to the crawl level. The second is to finish balancing the money market, demand and supply of pesos. This is extremely important because when we arrived the imbalance was total, who wanted pesos in December of last year? “There were four monetary bases in remunerated liabilities of the Central Bank.” Finally, he added as a condition that he reach an agreement with the IMF. “If these three goals are met, we will probably be able to get out of the trap”.
Source: Ambito
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