Hours before the summit between presidents Alberto Fernández and Joe Biden at the White House,
Minister Sergio Massa met with the number two of the International Monetary Fund, Gita Gopinath
, at a very fragile moment in the Argentine economy and when the executive board of the agency analyzes whether it approves a
relaxation of the reserve goals.
According to Economy sources told
Clarín,
the officials talked about the serious drought that is affecting the country and how to increase exports and said that there
was no talk of modifying other goals, beyond the already proposed easing of reserves.
"It was a very productive meeting," the sources noted.
The measures taken by the Government were reviewed, such as financing with the debt swap and the clearance of maturities.
And also the measures that are being taken to promote exports.
"Always thinking about the future," they said.
"Good meeting with the Minister @SergioMassa. The fourth review of the program was discussed, the severe impact of the drought and the importance of actions to increase reserves and continue to mobilize internal financing in a sustainable manner," Gopinath tweeted at the end of the meeting.
Massa went to the Pennsylvania Avenue building to visit Gopinath, the agency's first deputy executive director and in fact the agency's number two under her boss, Kristalina Georgieva, who could not receive the minister because she is on a business trip for Asia.
The meeting lasted an hour and a quarter and the head of the Economy Cabinet, Leonardo Madcur, and the IMF technical staff headed by Luis Cubeddu also participated.
Massa and Gopinath have already met several times and they are on good terms.
"In view of the meeting of the IMF board of directors,
we had a good meeting
with the deputy managing director of the organization, Gita Gopinath and her team, with whom we analyzed the impact of the drought in the country and the expiration of the curve in pesos was assessed. "Massa wrote in a tweet.
"We both share the government's decision to
continue advancing with measures that promote the increase in exports with the aim of strengthening reserves,"
he added.
The appointment is important because it happens when
the executive board of the organization is analyzing the approval of the fourth revision
of the program with Argentina, in which a relaxation of the reserve goal is proposed because the Government cannot comply, due to the follow-up and other variables.
It is estimated that the board will approve the change in objective at a meeting –possibly this Friday–, but the numbers could get even worse for the following quarter, and even more flexibility from the Fund could be required.
From Economy they discount that the
staff report
that was raised by the technicians will be approved, because it is customary that a potable document be raised to the board if it is endorsed.
But it is possible that the member countries, looking to the future, raise severe doubts about whether the Government can continue to meet the goals and pay in time and form.
The drought worsens, reserves continue to fall and in an election year it is feared that the fiscal deficit goal of 1.9% of GDP will not be reached by the end of the year either.
The Fund,
which has adopted unusual flexibility in the Argentine case,
wants our country's economy not to explode and for Fernández to reach the PASO and the elections without any problem.
But it is considered that moving the goal of the deficit is a line that they do not want to cross.
The role of the United States is key,
since due to the size of its economy it is the country that has the most weight in any vote of the board on the subject.
Gopinath will be discussed with Gopinath this Wednesday about all of this – above all about the future steps.
It is also very possible that the issue will be discussed at the meeting with Biden at the White House, because the Secretary of the Treasury,
Janet Yellen,
will attend there , although from Economy they prefer not to centralize the debate on that but to present Argentina as a country of opportunities and a possible strategic partner in food security, critical minerals such as lithium and also gas.
Undoubtedly, they will refer to the Fund when they mention the constant demand that President Fernández makes in different forums, which is that the organization lower the interest surcharge charged to countries that have very large loans, such as Argentina.
This idea, which would alleviate our country's debt, has already been rejected by the executive board and is not expected to find an echo in the US But the government will still insist.
In addition to Madcur, the meeting was attended by Guillermo Michel, General Director of Customs and Santiago
Massa will return to Washington very soon: the week of the 10th to the 16th the Spring Assembly of the organization and the World Bank will be held in this capital, where Ministers of Economy and heads of central banks from all over the planet will arrive.
There he will continue to discuss the key issues for Argentina.
Meanwhile, the minister continues to "scratch the pot" -as they say in his delegation- in credit organizations such as the IDB and the World Bank because the loans -even if they are for public works- enter as dollars and are executed in pesos.
Every dollar counts when it comes to accumulating reserves and meeting program goals.
That's why he talked about accelerating lending with the World Bank as well, with calls with president David Malpass and Axel von Trotsenburg, managing director of operations on Tuesday.
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