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The IMF will meet next Wednesday to analyze the agreement with the government of Javier Milei

If the agreement is approved by the IMF Executive Board, Argentina would have access to about 4.7 billion dollars. The expectation of the Ministry of Economy is that the IMF Board gives its approval.

Argentine News

The Board of Directors of the International Monetary Fund (IMF) will hold a meeting next Wednesday, January 31, to discuss the Argentine caseas confirmed Ambit in official sources. After the agreement reached by the national authorities with the technical staff of the organization, on January 10, within the framework of the seventh review of the Extended Facilities Program, the approval of the Board of Directors is the last instance that remains for the country to obtain a disbursement of 4.7 billion dollars.

The expectation of the Ministry of Economy is that the IMF Board gives its approval. In this regard, it is worth remembering that, after the understanding reached with the technicians, the organization released a statement stating that “The new administration is already applying an ambitious stabilization plan, based on a strong initial fiscal consolidation, along with measures to reconstitute reserves, correct relative price imbalances, strengthen the Central Bank’s balance sheet and create a market economy based on clear and predictable rules. It also provides for increased social assistance to protect the most vulnerable.”

That communication also stated that “The proposed disbursement is intended to support the determined economic efforts of the new authorities to restore macroeconomic stability and support Argentina in meeting its balance of payments needs.”

The fluid relationship between the Argentine government and the Fund was also reflected on January 17 when the president Javier Milei held a meeting with the head of the organization, Kirstalina Georgieva.

After the meeting, Georgieva broadcast a message on the X network in which she stated: “Very good meeting with the President of Argentina Javier Milei @JMilei. We talked about Argentina’s profound economic and social challenges and the decisive measures being taken to reduce inflation, promote private sector-led growth and use scarce public money to help the most vulnerable people.

The meeting took place within the framework of the World Economic Forum that took place in Davos (Switzerland). “The meeting could not have gone better and it was also very warm,” said a representative of the Argentine mission to Ambit.

On that occasion, the president reiterated before the head of the IMFhis decision to carry out a strong adjustment plan to end inflation and recover growth.

Although the Government has been rebuilding foreign currency reserves, the situation on this front continues to be criticismaccording to private studies.

This Friday, the Central Bank completed 7 weeks in which it made net purchases. Since the new Government took office, the entity acquired more than 5.9 billion dollars.

However, private calculations estimate that net reserves remain negative at about $7.5 billion. Hence the importance of the new disbursement of the Fund which, as anticipated by the Minister of Economy, Luis Caputowill be used to meet upcoming commitments with the organization.

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