President Javier Miley evaluates reaching an agreement with the International Monetary Fundas well as other multilateral organizations, in search of US$15,000 million which, consider, needed to open the exchange rate before mid-year.
“We are working on a new agreement with the IMF and if the conditions are given to us we are going to sign it. We are in a situation very favorable“, he stated, in dialogue with Radio La Red.
Online, he revealed: “I could contemplate disbursements, in addition to the Fund, from other countries and investment funds that would allow us move towards weighted coin competition systemto the extent that we accelerate the exit from the stocks”.
Moody’s warned that the provinces will suffer “a significant deterioration in fiscal accounts” due to Milei’s measures
At the same time, and as he did on previous occasions, he stressed that with the formation of a pool of loans, as described, would lift exchange restrictions immediately. “We need US$15,000 million. We still consider that there is still a risk, but If they give us that money we put it in the Central Bank, we open it and let them do whatever they want“he added.
However, he was cautious about the deadlines, emphasizing that he prefers to go as “safe” in case of not having the necessary foreign currency. “We don’t know if we’re going to get this or not, but we we can go to the market and take it forward in the middle of the yearwhich is what the IMF estimates,” said the libertarian.
These statements coincide with what was stated, this Wednesday, by the Minister of Economy, Luis Caputowho, at the event AmCham Summitmaintained that “The US$15 billion could come from the Fund or from somewhere else”.
The lifting of the exchange rate, as well as the possibility of new disbursements from the multilateral organization led by Kristalina Georgieva, was one of the main topics of the meeting that, weeks ago, the president maintained with the Deputy Managing Director of the International Monetary Fund, Gita Gopinath.
After her visit to Argentina, the second of the entity highlighted the first measures of the government y recognized “the important efforts carried out for restore macroeconomic stability by establishing a solid fiscal anchor.”
Regarding this, Milei assured, in the radio interview, that the IMF is “astonished” with the forcefulness of the adjustment that his management is takingwhich is not only about of reducing the Treasury deficitof about five points of GDP, and the cleaning up of the accounts of the Central Bank but also of many other aspects corresponding to the quasi-fiscal deficitwhere the cut reaches 10% of GDP.
The Government promises to save $6.2 billion by cutting subsidies to 1,637 AMBA groups
“We are going through the hardest month”
Asked about the economic situation, the President of the Nation declared that the country is “going through the hardest month”in reference to March, and warned that this situation will continue “until the first days of April.”
However, he shared the results of a survey that indicated that “70% of Argentines perceive a light at the end of the tunnel”. “Despite the current difficulties, the population hopes to find a way out“he emphasized.
Faced with criticism for the inflation recorded in February, of 13.2%, the president supported the work of the head of INDEC, Marco Lavagna, ensuring that “He is doing an exceptional job.”
Finally, praised the impact generated by the interest rate reduction implemented by the Central Bank. “Days ago We took a hammer to the interest rate. That in another context would have caused a brutal jump in the dollar but that didn’t happenOn the contrary, we continue buying dollars,” Milei concluded.
RS / LR