The elected president of Argentina Javier Milei held a first virtual contact on Friday (11/24/2023) with the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, in which they addressed the critical situation of Argentina’s economy.
“I had a great conversation today.” with Georgieva “in which we discuss the great economic challenge facing our country,” Milei published on the social network X.
Georgieva also reported on the conversation on the same platform with an image of the video call with Milei, during which, she wrote, they discussed “the significant challenges of the Argentine economy and the decisive policy actions necessary.”
Argentina maintains a credit program of 44 billion dollars with the IMFsince the government of right-wing Mauricio Macri (2015-2019) requested financial assistance in 2018.
The outgoing administration of Peronist Alberto Fernández renegotiated the loan, but the recession that accompanied the COVID-19 pandemic and a severe drought in 2023 hit the Argentine economy and made it difficult to meet the goals agreed with the IMF.
Inflation exceeds 140%
Argentina’s annualized inflation exceeds 140% and poverty exceeds 40%. The IMF has recently estimated that the country will end 2023 in recession.
“I told (Georgieva) about different aspects of our fiscal adjustment plan and our monetary program. The Fund was collaborative to find the structural solutions that Argentina needs,” Milei said.
During the campaign, the president-elect, an ultra-liberal economist, promised a drastic fiscal adjustment, of up to the equivalent of 15% of GDP, as part of a program that includes the elimination of the Central Bank and the dollarization of the Argentine economy.
According to Georgieva’s detail of the conversation, “the IMF is committed to supporting efforts toward a lasting reduction in inflation, improvements in public finances, and growth led by the private sector.”
The international organization has a pending disbursement of $3.3 billion before the end of the year in favor of Argentina, but also a seventh review of the program.
jc (afp, La Nación)