“Already in Buenos Aires. The trip to Washington was excellent. I was not able to accompany the President to Davos because it will be three days of a lot of work between the Fund’s mission, the tender for accession announced yesterday, and measures that we are finishing designing from the Secretariat of Trade,” the minister expressed in his X account.
The Government anticipates the meetings of the technical team of the International Monetary Fund (IMF) with the purpose of resume face-to-face negotiations this week to reach a new financial agreement. This agreement would contemplate additional disbursements aimed at accelerating the elimination of the exchange rate. The Executive seeks to guarantee a Minimum financing of US$11,000 million to strengthen the Central Bank’s reserves.
How are the negotiations going and what are the discrepancies with the IMF
In this regard, Scope could know that they exist few points of disagreement regarding the characteristics of the new program and the mission visit – which is estimated to be chaired by Luis Cubeddu (head of the negotiation) – surely the purpose is to conclude the conversations.
There are differences over monetary policy. The IMF is already seeking Argentina to dismantle the stocks and unify exchange rates. On this point, the Argentine Government agrees, but the discussion revolves around the timing and the way to carry it out. There is also the debate about whether the current exchange rate is balanced, an aspect that the multilateral organization has been questioning.
The president is convinced of the program being carried out and is not willing to put it at risk. He believes that the results support it. This position clashes with the dogmatism of the Fund’s technical teams.
Milei stated this Sunday that “at the beginning of our administration, the exchange gap was 180%. Today, that gap is practically dead and “We work day and night to finish cleaning up the Central Bank’s balance sheet and be able to lift the exchange rate once and for all.” In a speech given at the Milken Center in Washington, he also maintained twice that the IMF was surprised by the results of its program.
Thus, the one who will help unblock the talks will be Kristalina Giorgieva, they speculate in Washington, since she is “much more pragmatics”.
In principle, the amount that the Argentine government would seek from the organization is around 11,000/12,000 million dollars and the economic team is evaluating complementing this figure with a new REPO operation.
Source: Ambito
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