In the midst of informal conversations to advance a financial program, Javier Milei met this Tuesday with the head of the International Monetary Fund, Kristalina Georgieva. After five months without seeing each other, the meeting took place within the framework of the G20 leaders’ summit in Rio de Janeiro, where the head of the organization highlighted Argentina’s “impressive” progress and showed herself “prepared” to support the country.
“I had another productive meeting with President @JMilei of Argentina. We evaluate the impressive progress in the stabilization of the economy and its transition towards a more market-oriented model. We are prepared to support Argentina and her people in building on these achievements,” said the general director of the Fund in her X account after the meeting and a photo in which they were seen hugging.
Milei had last seen Georgieva on June 14 during the G7 summit in Italy. Since then, relations have cooled amid uncertainty over the US elections. But Donald Trump’s victory and the meeting he held with the Argentine president last week reactivated expectations of advancing a new program with fresh funds, although Trump will take office on January 5.
From the meeting with the head of the IMF, The Minister of Economy, Luis Caputo, also participatedwho thanked him for his support and that of his team. The official had announced last Wednesday the start of talks with the organization about a new agreement. “We are talking to the Fund about a new program, it’s going to take a few months“he told Clarín. But Washington authorities have not yet confirmed that version.
The Government seeks to clear up doubts regarding the end of the Extended Facilities agreement at the end of the yearan understanding signed by Alberto Fernández in March 2022 to refinance the US$ 44 billion loan that Mauricio Macri took in 2018, when Caputo was Minister of Finance. The last two reviews and the respective disbursements for a total of US$ 1,082 million remain from this program.
The Government paid the organization on November 7 the last interest payment of the year for US$ 800 million. In 2025, a strong outflow of dollars is expected due to debt payments: US$ 11,000 million mature with the bondholders and US$ 3,300 million of interest will have to be paid to the Fund, unless a new program is agreed upon. The intention of the Economy is to obtain fresh funds or some type of financial relief.
The minister met three weeks ago with the head of the IMF at the organization’s summit in Washington. There, the official highlighted the “improvement” of the indicators and an “alignment” in terms of the country’s priorities, while the deputy head of the region, Luis Cubeddu, highlighted the progress in terms of inflation and credit, although he said that “it is necessary to lift the trap gradually and carefully”.
The government continues to exceed the goals agreed with the Fund after accumulating a primary surplus of 1.8% of GDP in the first 10 months and a financial surplus of 0.5% of GDP. But The external front continues to pose challenges due to exchange rate appreciationthe depreciation of international currencies due to the expectation of higher tariffs by Trump and the fragility of net reserves, which remain negative.