The International Monetary Fund noted this Thursday, the day after the announcement of an agreement with the government to relaunch the program with the organization, that the legislative package under discussion in Congress ““It has major tax implications.” and they hope soThe proposals put forward by President Javier Milei “gain political support”.
Julie Kozack, the Fund’s communications secretary, held a press conference in Washington where she answered some questions about the recent agreement with Argentina, which must be approved by the executive board in the coming weeks.
On Wednesday, the government managed to restore the collapsed agreement with the International Monetary Fund and, once it gets the green light from the board, it will allow the disbursement of $4.7 billion to meet debt payments until April, in what was a clear signal of support for the IMF. the adjustment plan promoted by the new president.
The agreement seals the seventh review of the program, scheduled for November, but which had been left in limbo when the program was derailed by ministerial candidate Sergio Massa’s “Platita Plan”, which ignored everything agreed with the organization.
The final details of the agreement were negotiated with a delegation of the Fund in Buenos Aires and included the definition of two key objectives, which had not been achieved by the previous government. Now Milei committed to bringing the current fiscal deficit to a primary surplus of 2% of GDP and accumulating $10 billion in net reserves, in principle without new funds from the organization.
The agreement “aims to restore macroeconomic stability and get the program back on track,” Kozack said.
“It is important that the new administration is already implementing an ambitious stabilization plan that includes fiscal consolidation measures, actions to rebuild international reserves, correction of imbalances in relative prices and a market-oriented economy. This package also includes an increase in ‘social assistance to protect the most vulnerable,’ he added.
Kozack responded to a question from Clarin sThe importance for the IMF of Congress’ approval of the necessity and urgency decrees and the laws proposed by Milei is discussed. “There is a very large legislative package that is under consideration. These laws have an important tax implication, there are aspects that have important tax implications and We hope that the authorities will continue to gather political support approve key aspects of these laws,” the official said.
The package, which includes reforms aimed at freeing the economy and rationalizing the labor market, is the subject of heated debates in the committees.
Milei said Thursday he was optimistic. “We are optimistic and I think the numbers are there for everything to unfold as expected. We believe that everything will work out. It may have a sequence, but everything will work out,” she considered.
In this context, the head of state stated that “politics must rise to the occasion to see if it is part of the solution or the problem”.
The agreement with the Fund did not include inflation prospects and Kozack clarified that “they will be provided in the information report that will be sent to the board”. As for monetary policy, he said that “it is evolving to support money demand and also disinflation” and that “the authorities are committed to ending government funding.”
Source: Clarin
