He Minister of Economy, Luis Caputowill travel this week to Washington to participate in the Spring Meeting of the International Monetary Fund (IMF) and will seek to bring closer positions with the organization with a view to a new agreement that allows a greater disbursement of dollars in the coming months.
The traditional conclave will bring together the finance ministers and central bankers of all the organization’s member countries between April 17 and 19 in the US capital. Over the course of the days, the IMF will release the new global perspectives and updated projections for the world‘s main economies.
In the case of Argentina, the staff report prepared by the technical team of the international credit organization recently estimated a recession of 2.8% and an average inflation of 250% in 2024.
With the sharp drop in consumption, inflation continues to decelerate: it was 11% in March
In addition to participating in the central meetings, Caputo will seek to meet bilaterally with the Managing Director of the Fund, Kristalina Georgieva, and his number two, Gita Gopinathto move forward with negotiations on a new agreement. He also plans to meet with Janet Yellen.Secretary of the Treasury and main economic advisor to US President Joe Biden.
Regarding the implementation of a new program, The IMF indicated in its last review that it was anticipated to refer to this possibilityensuring that “the seventh review of the program concluded on January 31, allowing the disbursement of 4.7 billion dollars. Our objective continues to be to support policies aimed at strengthening macroeconomic stability in Argentina, while protecting the most vulnerable. “It is still premature to discuss the precise modalities of the program.”
In recent weeks, contacts between the administration of Javier Milei and the organization have intensified, based on the growing interest of the Argentine Executive in having new funds that allow an exit from the exchange rate stocks in the middle of the year.
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With this intention, Caputo will use the meeting in Washingtonwhich will be the first since Georgieva was confirmed as head of the board for a new five-year period, to accelerate the efforts for a new agreement.
Last week, the Government had to face the first transfer of funds to the IMF since January of this year but decided to unify by the end of the month the payment of the US$1,940 million of maturities corresponding to April, which were distributed in three instances.
In mid-May, the eighth quarterly technical review will be carried out, which will evaluate compliance with the goals and, if approved. will allow the disbursement of US$792 million. In the ninth review scheduled for August, the IMF will release US$528 millionwhile in November, when the tenth is completed, it will unlock the sending of US$412 million.