The IMF asked to keep the course in Argentina and warned about the risks facing the country

Washington.- The manager director of the International Monetary Fund (IMF), Kristalina Georgievaa briefing On the agenda of global policy, in which he talked about the challenges of the Argentine economic plan after the agreement with the agency. He said that “Argentina showed that this time is different, and that it demonstrated decision to straighten its economy.”and warned that “Face the risks of the global environment”.

Georgieva urged Argentina to “Keep the course”and said he does not see a risk of political change. He also highlighted the loss of poverty, although he said that it remains at high levels.

“There is a very important opportunity for Argentina on what the country produces, agriculture, mining, lithium”he said.

“What are the risks? The first, external, which negatively impacts Argentina”he warned, for the worsening of international conditions, in the midst of the tariff warfare undertaken by President Donald Trump.

“Domestically, the country will go to elections next October and it is important that the mood of change is not altered. We do not see that risk that can materialize, but we urged Argentina to maintain the course”he said.

In his presentation, he pointed out that countries must act to safeguard economic and financial stability, and that “The best way to do it is to put order in your own home.”

“As for fiscal policy, most countries need to rebuild their shock absorbers and guarantee sustainability, although some may suffer disturbances that justify temporary and specific fiscal supportwe urge countries to Define credible, gradual adjustment routes In most cases, protecting key investments, maximizing the efficiency of spending and leaving room for longer -term needs, “said Georgieva, who yesterday met with the Minister of Economy, Luis Caputo, and his team to monitor the march of the new IMF agreement with Argentina for 20,000 million dollars.

“The counterparts will be hard for everyone, but they will be more for low -income countries, which face both difficult financial conditions and The slowdown in world growth and the fall in aid flows. We cannot have countries with a relationship between taxes and GDP less than 50%, where it is difficult to sustain the functioning of the State, for the central banks, “said the Bulgarian official. The times when the countries marched to the long pace have ended. The different countries will face different conditions, inflationary pressures in some countries are easy. In others, the pressures have not yet sent,” he added.

“What is our advice? Monitor the data. Monitor inflation expectations. Central banks will have to achieve a delicate balance between support for growth and containment of inflation. For this, not only should they adjust official interest rates, but also rely on credibility to anchor expectations. The independence of central banks is essential for credibility “Georgieva recommended, who stressed that Protected open economies, including many emerging markets, “are exposed to commercial shocks and the type of financial conditions.”

“They must preserve the flexibility of the exchange rate as a shock absorber in case of unjustified volatility of the currency market,” he said, without giving particular examples.

“My third and final general priority is to redouble the reforms oriented to growth to increase productivity. Even before the last crisis, we had been leading the world of high technology and low growth for time, sounding alarm on the weak growth in the medium term. They have heard me say many times, now is the time for long and lively reforms, but often delayed, which can create a good business environment and put the business in the front line. Reform labor markets creates conditions for innovation And, in a world of rapid technological advances, it gives countries the opportunity to take advantage of the benefits of these advances for their population, “said Georgieva, that in recent days, since the inauguration of the IMF spring sessions and the World Bank, in Washington, he was very praise of the march of the Argentine Economic Plan after the agreement with the multilateral organism.

“The IMF, as always, will be there for our members, we focus on what we know best, Help them guarantee economic and financial stabilityand solve, or even better, prevent paying problems and implement solid policies and institutions to underpin turbulent economies, ”he said.