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Javier Milei has the support of Kristalina Georgieva and the Government assumes that the IMF will make a disbursement of 3,000 million dollars in January - Infobae
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Javier Milei tiene el apoyo de Kristalina Georgieva y en Gobierno asumen que el FMI hará un desembolso de 3.000 millones de dólares en enero
Durante una reunión informal del board, la directora gerente del Fondo se mostró optimista con el plan de ajuste de la Argentina y es probable que haya un waiver que permita superar la revisión pendiente de 2023
www.infobae.com
January 03, 2024
During an informal board meeting, the Fund's managing director was optimistic about Argentina's adjustment plan and it is likely that there will be a waiver that will allow the pending 2023 review to be overcome.
By Romanian Lejtman
Javier Milei and Kristalina Georgieva, the two protagonists who will decide the direction of the relationship between the IMF and Argentina
The Government's adjustment plan and the explicit support of the White House are the political and economic arguments deployed in Balcarce 50 to maintain that the board of the International Monetary Fund (IMF) ) will grant a waiver (forgiveness) to Argentina and will disburse 3,000 million dollars to meet the capital and interest maturities scheduled in January and February 2024.
https://www.infobae.com/politica/20...i-en-vivo-todas-las-noticias-minuto-a-minuto/
In mid-December, Kristalina Georgieva participated in an informal board meeting to describe the current situation of the Argentine Case. The conclave took place in Washington and the managing director of the IMF explained to the directors that progress was being made on a Staff Level Agreement (SLA) as a consequence of the magnitude of the adjustment plan which is implemented by the administration of Javier Milei.
The goals agreed upon between the then Minister of Economy and the managing director of the IMF referred to the fiscal deficit, monetary issuance and the Central Bank's reserves, three basic objectives of the Extended Facilities agreement that Massa sacrificed to leverage his presidential campaign strategy.
MIlei fulfilled his electoral promise and the negotiations got back on track during the (elected) president's visit to Washington. During that whirlwind tour, Milei was supported by Jake Sullivan, Joseph Biden's National Security Advisor, who promised to intercede in the IMF and the Treasury Secretary, controlled by Janet Yellen.
Javier Milei and Jack Sullivan during their meeting at the White House
The IMF directors who belong to the G7 -Germany, Japan and Canada- were reluctant to treat Milei's government with political benevolence and Secretary Yellen was his main supporter in the White House. For Yellen and the G7 directors it was Argentina again, and it mattered little that Massa was no longer there and that the Economy Minister was now called Luis “Toto” Caputo.
Advisor Sullivan fulfilled his part of the script in DC and Caputo spent long hours via zoom and chat explaining the IMF bureaucracy that Argentina could meet the planned goals with the adjustment plan that Milei was pushing through DNU, devaluation of the exchange rate and unprecedented reduction in public spending.
One week before Christmas, the board received Georgieva to hear her position regarding Argentina's economic plan. It was a meeting informal that the managing director used to describe the political proposal that Milei faces and the technical program that Caputo applies from the Palacio de Hacienda.
The meeting lasted about two hours, and a work schedule was, in fact, established. The IMF bureaucracy had to travel to Buenos Aires to meet with the Chief of Staff , Nicolas Posse, and Minister Caputo, and the head of the Central Bank, Santiago Bausili, before closing the Staff Level Agreement (SLA).
In this context, presidential spokesperson Manuel Adorni confirmed yesterday that Luis Cubeddu and Ashvin Ahuja, two key officials of the Western Hemisphere Department of the IMF, will arrive in the country this Thursday. It will be a formal visit of forty-eight hours: the data they need, they already have.
When Cubeddu and Ahuja return to Washington, the SLA will be completed, which will have new goals and the same economic program. And before the end of January, the IMF board will meet to grant a waiver and approve a disbursement of $3 billion that has been pending since last November .
In the midst of this complex work agenda, Milei and Georgieva will meet in Davos. At the same time and in the same place. An informal contact between the President of Argentina and the managing director of the IMF is not ruled out.
