With Chief of Staff Nicolás Posse in Washington,
the executive board of the International Monetary Fund meets this Wednesday
to analyze whether the latest review of the Argentine program gives the green light, which will
support President Javier Milei's adjustment plan
and allow a disbursement of about US$4.7 billion.
The board, made up of the
executive directors representing the member countries
, will have in their hands the agreement at the technical level signed on January 10, which revived the program that had derailed last year with
Sergio Massa
's “Plan Platita” , whose
goals were unmet.
The directors will ask specific questions to the technicians who prepared the report, headed by
Luis Cubeddu
, and the Argentine representative to the IMF,
Leonardo Madcur
, could clear up some doubts if necessary.
It is estimated that the review, which includes new fiscal and reserve goals,
will pass without a hitch, although it could have some surprises.
According to the
Reuters agency,
the board could allow Argentina
to postpone this year's last review
scheduled for September
to allow Milei's management greater scope
to apply economic reforms and, potentially, negotiate a new program.
Why did Nicolás Posse travel to Washington?
The Chief of Staff, Nicolás Posse, arrived in this capital on Tuesday and held a meeting with the Fund's number two, Gita Gopinath.
There was no official information about the content of the meeting, but it is estimated that the Argentine official presented Gopinath with the
details of the discussion on the DNU and the omnibus law
that is being discussed this Wednesday in the Congress hall.
Above all, how do they plan to rearrange the numbers these months, when the fiscal part of the law, which allows a good part of the adjustment, was moved to later because the opposition did not endorse it.
Posse's visit also included a meeting at Treasury with Undersecretary for International Affairs Jay Shambaugh, whom he briefed on political negotiations over the plan.
The United States is a key actor on the Fund's executive board
because, as the world's leading power, it is the main partner with the greatest voting power.
Joe Biden's government has already shown that it agrees with Milei's new measures and will provide support to Argentina.
The program includes
a fiscal adjustment with the removal of subsidies
, rate increases, privatization of public companies, reduction of expenses, reduction of transfers to the provinces, labor flexibility and many other measures to achieve the new goal of 2% of primary surplus that is set. agreed with the organization, a package that will require a lot of effort on the part of Argentines with an economy that will cool down as the Fund now predicts.
It also includes a
new reserve target
: these policies are expected to lead to an accumulation of $10 billion in net reserves by the end of 2024.
Minister Luis Caputo insists that the goals
will still be achieved
, despite the Government's misstep with the law.
The Fund likes these measures, but
seeks that they be expressed by consensus.
“The plan focuses on establishing a solid and credible fiscal anchor, along with measures to replenish reserves, correct relative price imbalances, strengthen the Central Bank's balance sheet and create a simpler, rules-based and oriented economy. to the market," the Fund said.
Posse will continue his agenda in Washington this Wednesday with an eye on what happens at the Fund.
The Chief of Staff will focus his day on the
Central Intelligence Agency (CIA).
Accompanied by the head of the Federal Intelligence Agency (AI) Silvestre Sívori, he will meet with the director of the agency, William J. Burns, “to strengthen bilateral relations in the matter and reposition our agency in the world,” they said. it's a statement.