After learning that the Government is seeking a new agreement, the former director of the Western Hemisphere Department of the International Monetary Fund (IMF), Alexander Werner, assured that the organization could disburse fresh funds in a range of between US$8,000 and US$10,000 million. “I think the Argentine government should fight for that,” she said.
“At the time, with President Mauricio Macri, he was offered US$57,000 million. It is a maximum reference where one could be anticipating the order of a new program with the Fund. It could be the range where one could be thinking that the new program with the fund, that the fresh resources are around 10 billion; I think it could be between US$8,000 and US$10,000 million, more or less.“he said in statements to Radio Miter.
“I think the Argentine government should fight for that” the official completed.
Along these lines he expanded: “I believe that the Fund also wants there to be a new agreement because obviously the Argentine economy, although in the last six months it has been in a better situation and much better than what was anticipated when this government took office, there is still many imbalances and many issues to resolve.
He also estimated that the country needs to have “a course of growth, development and job creation, consolidating the decline in inflation towards a low double-digit level, between 30 and 10 percent in the next 24 months.” Regarding the exchange situation, he reiterated that it still needs to be normalized and the exchange rate barrier lifted.
Negotiations advance for a new agreement with the IMF
President Javier Milei he commented to Kristalina Georgievamanaging director of the International Monetary Fund (IMF) the intention of sign a new agreement with the multilateral organization (the current one expires at the end of the year). The official’s response was that the new program has to contemplate how to move from stabilization to growthaccording to a high-ranking source from the Casa Rosada Ambit.
The conversations took place this week within the framework of the G7 meeting that took place in Italy and to which the Argentine head of state was invited.
In official media it is said that the relationship between the president and the director of the IMF is “very fluid” and that Georgieva values the “front style” by Milei.
On the three occasions they met, Georgieva congratulated Milei on the progress in economic reforms. In particular, she praised the recent approval of the Bases law in the Senate and highlighted the reduction of inflation in Argentina. In addition, she once again considered that the country has achieved a fiscal surplus.
Both Georgieva and Milei consider that the stabilization strategy that the Argentine government is facing a growth process must follow, official sources maintain. And they add that the director of the Fund gave them a new sign of confidence by pointing out that “He cannot fail in this field because it is his specialty.” Milei presents himself as a specialist in economic development.
Also participating in these meetings were Karina Milei, general secretary of the Presidency; the ambassador to the United States, Gerardo Werthein; and Demian Reidelchairman of the President’s Council of Advisors.
In Italy the head of state also met with the president of the World Bank, Ajay Banga. In this regard, the Government anticipates that – if the ongoing reforms continue – “the country could receive important credits” of the organism.
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