The
International Monetary Fund
said Thursday that it sees
“impressive progress” in Argentina's economy
and praised progress in
fiscal terms, international reserves and inflation.
However, he warned that the path to stabilization “is not easy” and that
a “firm” application of the measures is required. He also reiterated the need to improve the “quality of fiscal adjustment.”
At a press conference in Washington, the Fund's Communications Director,
Julie Kozack
, answered some questions about the first economic steps towards the stabilization of Javier Milei's government, shortly before Minister Luis Caputo and his team arrive in this capital. for the Spring Assembly of the organization and the World Bank, between April 15 and 20, and also to continue with the negotiation of the program.
“The Argentine authorities are implementing an ambitious stabilization plan to restore macroeconomic stability and as is known, the plan focuses on establishing a strong fiscal anchor that eliminates government financing from the Central Bank along with policies that reduce inflation, restore reserves and other impediments to growth that have persisted in the past,” Kozack said.
And he added praise for the Government: “The progress has been impressive. There was a fiscal surplus in January and February for the first time in a decade. International reserves are recovering. Inflation is falling faster than expected and market indicators, such as the exchange rate gap, continue to improve.
However, the official warned: “The path to stability is never an easy path and requires firm implementation of policies” and that “it is important to continue improving the quality of fiscal adjustment while adapting monetary policy during this transition period.” ”.
Kozack also highlighted that they view "with favor the recent efforts of the authorities to increase social assistance with the aid program dedicated to children and also in the pension fund programs." “We must continue to pragmatically accumulate social and economic support to be able to continue with the reforms,” he said.
Minister Caputo, together with the president of the Central Bank Santiago Bausili, and part of his team will soon come to Washington to attend the Spring Assembly of the IMF and the World Bank, which will be held from the 15th to the 20th, an event where everyone arrives the Ministers of Economy and heads of Centrals from all over the world.
But Argentines have a mission beyond listening to global ups and downs. They will surely meet in parallel with the agency's technicians and authorities to continue advancing in the next review of the program, the eighth, which according to the schedule should take place in mid-May and in which the IMF should disburse US$792 million. The economic team is also seeking to negotiate a new agreement to take fresh money from the organization (about US$15 billion) to get out of the trap, a relief that the Fund has so far given no indication that it will grant.
Regarding the possibility of a new program, Kozack noted this Thursday that “the Fund team and the Argentine authorities are actively in talks about the Fund's current support program whose objective continues to be to support measures to return to macroeconomic stability and establish the bases for inclusive and sustainable growth in Argentina. "At this time it is too premature to start talking about modalities for a future program."
The reserve accumulation and fiscal deficit goals are being met, as Kozack highlighted. Last week, the director for the Western Hemisphere of the IMF, Rodrigo Valdés, was in Buenos Aires, who met with Caputo, Bausili and other officials. The Chilean asked to adequately “calibrate” the exchange controls and, as always, support those most vulnerable to the adjustment.