The International Monetary Fund said this Thursday that the current program with Argentina “It is yielding impressive results,” and that they are studying adopting a new agreement. However, they warned that, to sustain these results, “it is of decisive importance to continue adopting a group of coherent policies, especially in fiscal and monetary matters.”
At a press conference in Washington, IMF spokesperson Julie Kozack highlighted that the eighth review of the program had already been completed (in June) and that ““The authorities are currently exploring the option of moving to a new agreement with the IMF,” without offering more details.
The spokesperson’s words come after the meeting this week in Rio de Janeiro between President Javier Milei and the managing director of the Fund, Kristalina Georgieva. The head of the organization had noted after the meeting that the country had made “impressive progress” and that they were “prepared to help.”
Although still the ninth and tenth revision remain to be completed of the current program, The Government seeks a new agreement with disbursements of fresh funds that allows you to more comfortably go through the expiration challenges that are coming next year and the following ones. The Fund has celebrated the strong adjustment that has been implemented in Argentina, but He doesn’t seem to be in too much of a hurry. to sign another program that involves more fresh money.
The spokesperson pointed out that the current program of Milei and the economic team led by Luis Caputo, “is yielding impressive results, which include a considerable reduction in inflation, fiscal surplus and also the improvement of reserve coverage”. Also, Kozack added, “there are growing signs that a recovery both in economic activity and in real wages.”
However, when asked about the path indicated by Milei to lift the exchange restrictions or the stocks, Kozack noted that “what I can say is that the stabilization program has produced better results than expected. To date it is like this and to maintain sustainability Of these impressive results in terms of stability and growth, of course, it is critically important to continue to adopt a set of coherent policiesespecially in fiscal and monetary matters.”
And he added that the IMF’s technical staff continues to work closely with the authorities and is ready to support Argentina and its people “in consolidating the achievements achieved so far and in address the challenges that still persist.” And that they are working “closely on these issues” and that they continue with a “very constructive” dialogue.
Luis Caputo said last week to Clarion that began talks with the Fund for a new financial program, something that it acknowledged at the time could include fresh funds. But has not yet submitted a formal request, since Apparently the conditions that would imply a new agreement would be being analyzed. Kozack did not give precise details about this.
The Government is enthusiastic about the arrival of Donald Trump to the White House, on January 20. At La Rosada they believe that the good harmony that both leaders achieved last week in Palm Beach will materialize in a strong support from the United States for a new program with Argentina before the executive board of the Fund, which beyond Milei’s adjustment, still views the country’s historical non-compliance with distrust.
However, people who know the magnate closely have pointed out to Clarín that Trump is a pragmatist and that the good harmony between the two will not necessarily translate into concrete actions. Although Milei’s “good writing” is followed with enthusiasm by the Fund’s executive board, they want to see their project consolidate politically.
The President is also moving forward with other options to seek funds. It increased its turn towards China, which is key due to financing with a swap, and the Government is also seeking to negotiate a REPO loan with international banks.