Argentine Economy Minister meets with IMF Chief in Rio — MercoPress

Argentine Economy Minister meets with IMF Chief in Rio

Caputo was full of praise for Georgieva as he almost desperately needs fresh IMF funding

Argentina’s Economy Minister Luis Toto Caputo met Thursday in Rio de Janeiro with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, who said the encounter had been “constructive.”

“Constructive meeting w/ Minister @LuisCaputoAR in Rio. We discussed Argentina’s strong performance in the fight against inflation, fiscal consolidation & support for vulnerable people. We are committed to support[ing] the govt’s efforts to turn around the economy for the benefit of Argentine people,” Georgieva explained on X. The gathering took place on the side of a convention of G20 Ministers ahead of the Group’s Summit in November.

Caputo thanked Georgieva’s message and said she topped the historical list of IMF managing directors: “Thanks Kristalina for the IMF support. Best IMF’s MD ever!” wrote Caputo. Both messages were posted originally in English.

Despite reports piling up that President Javier Milei administration’s meddling with currency exchange rates would be against IMF policies and would subsequently render Argentina uneligible for further disbursements, Caputo insisted he was confident a new arrangement would be reached shortly to help the Libertarian Government through the ongoing consumption crisis stemming from anti-inflationary measures.

Caputo was joined by Argentina’s Finance Secretary Pablo Quirno, who participated in the Working Group for the establishment of a Global Alliance Against Hunger and Poverty, as did US Treasury Secretary Janet Yellen; World Bank President Ajay Banga; Inter-American Development Bank President Ilan Goldfajn; and OECD Secretary-General Mathias Cormann, among others.

On June 13, the IMF approved the eighth review of the program with Argentina, followed by a US$ 800 million disbursement. “The program remains firmly on track, with all quantitative performance criteria having been marginally met by March 2024,″ the agency said back then. It also warned that ”to maintain progress it is necessary to improve the quality of fiscal adjustment, take the first steps towards an improved monetary and exchange rate policy framework, and implement reforms to unlock growth, formal employment and investment.”

But these funds have been used up and the Argentine government is reported to need fresh funding, despite its much acclaimed fiscal surplus.

Caputo’s agenda in Rio also included talks with Banga, Cormann, and Goldfajn, as well as with French Treasury Director General Bertrand Dumont at a time when Presidents Milei and Emmanuel Macron are also slated to get together for the Paris 2024 Olympic Games opening ceremony. The Argentine Minister is also to confer with his Italian colleague Giancarlo Giorgetti.