2024-01-11 02:52:36
SEBASTIN FESTIVAL
Buenos Aires
Updated Thursday, January 11, 2024 – 01:52
It is the first time in the extensive history of relations between Argentina and the IMF that the Buenos Aires government proposes a more drastic agreement than the one proposed by the Fund.
The Argentine Minister of Economy, Luis Caputo (d), accompanied by the president of the Central Bank, Santiago Bausili.LUIS ROBAYOAFPInternational Milei tries to overcome the skepticism of the White House and the IMF with a lightning visit to Washington
Argentina and the International Monetary Fund (IMF) announced this Wednesday an agreement to relaunch the program agreed with the previous government and that the former Minister of Economy Sergio Massa I completely failed to comply.
“The program does not include taking on new debt,” emphasized the Minister of Economy, Luis Caputo, accompanied by the president of the Central Bank, Santiago Bausili, at a late-night press conference in Buenos Aires.
Argentina will receive 4.7 billion dollars to pay maturities of the debt of 45 billion dollars contracted in 2018 by the government of Mauricio Macri, of which Caputo was minister.
The agreement, confirmed simultaneously by the IMF, is at a technical level, and the green light from the board of directors of the Washington-based organization is still missing.
“The new understanding comes after the failures of the programs of Mauricio Macri and Alberto Fernndez and was built from the first measures taken by the government of Javier Milei to stabilize the economy, rebuild the Central Bank’s reserves and reach zero deficit,” highlighted “La Nacin.”
“The core of the plan is a strong fiscal squeeze – higher than that contemplated in the original agreement – designed from a menu of broad spending cuts, including the paralysis of public works, and tax increases, an orthodox strategy that fits perfection with the Fund’s recipes,” he added.
It is the first time in the extensive history of relations between Argentina and the IMF that the Buenos Aires government proposes a more drastic agreement than the one proposed by the Fund.
Massa, Minister of Economy in the last year and a half of the Fernández government, obtained approval in August 2022 for the fifth and sixth reviews of the program and a disbursement of 7.5 billion dollars. Once the deal was closed, Massa, who was also Peronism’s presidential candidate, broke all agreements, starting with a massive tax cut.
The agreement with the IMF is good news for Milei, who insists that the Argentine economy is on the brink of catastrophe and demands a delegation of powers from Parliament to confront the crisis.
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