Wednesday, January 19

IMF: Georgieva affirmed that Argentina elaborates its own economic program


Regarding whether it is possible to expect an agreement soon, the head of the IMF pointed out: “What we have achieved so far is a common understanding of the importance of working towards a program that significantly improves Argentina’s macroeconomic fundamentals and places Argentina in a good position. way to recover from this crisis “

The head of the organization avoided giving a specific answer about the times by saying: “A program that, as President Fernández said after the elections, has broad social and political support. We have worked constructively so far, but much remains to be done. “.

He then specified that the objective of the IMF, which is “to help the people of Argentina” in the face of the problems they face, is very clear. He indicated that the problems “They range from inflation, the scarce participation of the private sector and poverty encompasses 40% of Argentines ”.

In this sense, it indicated that “So, we are thinking of a balancing program to address these problems that Argentina faces. A program that is all from Argentina, is not a program of the Fund. It’s just a program that Argentina widely supports and owns and is likely to be successful, “said Kristalina.

Is there a risk that the Fund’s demands will push Argentina to defaulting or causing Argentines to take to the streets to protest? was the question of the Reuters journalist.

“We are very well defined in our objective, and it is to help the Argentine people to face the problems that Argentina has. We are aware that these problems range from inflation to insufficient participation of the private sector in the search for growth, to poverty: 40% of the Argentine population is poor “

To later clarify that: “So, we are thinking of a program that is balanced to address these problems that Argentina faces and a program that is owned by Argentina. It is not a background program. It’s just a program that Argentina widely supports and owns that is likely to be successful. “

Time

This Saturday, the Argentine mission made up of officials from both the Ministry of Economy and the Central Bank will arrive in Washington to advance the details of the program.

In principle, this is one of the many meetings that have been held since, after the electoral result of the legislative elections, President Alberto Fernández announced the intention of sending a multi-year plan to Parliament in early December (containing the macroeconomic goals in principle discussed with the IMF) for legislative approval.

Clearly an acceleration of the conversations with the organism is observed and proof of this was the 12-hour meeting that the minister held Martin Guzman and the head of the mission Julie Kozack in Rome, on the occasion of the G20 summit.

In the Casa Rosada optimism leads to say that “There could be an agreement with the IMF in December”, and that the text of the letter of intent could be agreed upon.

What’s more, they point out that A mission from the agency would come in the last week of December -requisite for the signing of the letter of intent-.

In principle, it is estimated that the arrival of this mission could imply that an agreement was reached that is reflected in what is known as “staff level agreement” (agreement with the staff) that includes a letter of intent that on the policies that the government is willing to apply under the program agreed with the IMF. The letter of intent is part of what is submitted to the Board for its consideration.

If this schedule is met, they estimate that the Board of Directors could deal with it in the first meeting after the holidays for the Holidays, that is to say in the middle of January.

This leads to think that in the first days of February the Executive branch could send the IMF agreement to Parliament. If this schedule is met for March, the approved program would already be in place, they are enthusiastic.

Other more cautious versions speak that “at the most by March it would be discussed in Parliament.”

Where there would be consensus is that times have accelerated and, the positive response of the markets, shows that the negotiations seem to be on the way to reaching an agreement.



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