The announcement by the head of the Treasury and the head of the monetary authority had been agreed with the IMF in the last revision of the agreement and dated for the end of June. In other words, the multilateral organization knew in advance the proposals of the economic team to stop issuing.
The spokesperson for the Fund, Julie Kozackcelebrated the sanction of the Bases Law and the tax reform in the National Congress: “We welcome Congress’s approval of key fiscal and structural legislationas well as measures to strengthen the monetary policy framework”.
In this regard, the spokeswoman for the lender of last resort stated that the objective of the package of laws sent by the ruling party “is to improve the quality of fiscal consolidationfurther reduce inflation and support economic recovery.”
“We continue to collaborate constructively with the economic team on policies for create a more prosperous and stable Argentina”he concluded his statement, shared through his official X account (formerly Twitter).
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In a shared press conference, Caputo and Bausili announced the guidelines of the “second stage” of the ruling party’s economic program that contemplates an acceleration of the “handover” of debt from the BCRA to the Treasury with the aim of cleaning up the balance sheet of the former and paving the way towards an exit from the exchange rate restriction.
The official announced that there will be a “sterilization mechanism, similar to what exists today with the BCRA passes, but they will be focused on a Monetary Regulation Letterwhich is where banks will place their excess liquidity.” “It will be managed by the BCRA, but it will be included in the Treasury’s balance sheet,” he described.
For his part, the head of the economic portfolio avoided specifying when the exchange restrictions will be lifted. “The end of the cepo is a third stage. We have not set a date. but parameters that essentially imply macroeconomic order so that when we do this, we are as sure as possible that it will not cause any surprise to people like a rise in the dollar,” he said.
Caputo confirmed the continuity of the crawling peg -scheduled devaluation- of 2% monthly and 80/20 scheme for the settlement of foreign exchange of exporterscontrary to the IMF’s requests in its quarterly reports.
In line with President Javier Milei, Caputo confirmed that The PAIS tax will be reduced from 17.5% to 7.5% “as soon as the Bases Law is implemented and regulated”. As for the time horizon of the cut, he estimated between “August and september”.
