The United States provided this on Tuesday key support for Argentina’s program with the International Monetary Fundwhich still needs to be approved by the organization’s executive board and communicated Clarion what is it “It’s an important tool” towards the stability and prosperity of the country.
The support from the United States – the Fund’s main shareholder – comes just hours before the meeting in Davos of President Javier Milei and IMF Director Kristalina Georgieva. And just a few days before the organization’s board meets in Washington to give the green light to the program.
Asked by this correspondent about the policies faced by the Milei government and US support for negotiations with the IMF, a State Department spokesperson said: “We support continued engagement between Argentina and the IMF. “The IMF program is an important tool to support Argentina as it charts a path towards greater economic stability and prosperity.”
He added that “the United States continues to work with Argentina to eeliminate barriers to trade and investment to improve the business and investment climate, generate economic growth and open opportunities in a variety of sectors, from energy and natural resources to digital”, sectors that Joe Biden’s government is looking at with interest.
Finally, the spokesperson highlighted other important aspects for bilateral relations: “The United States continues to work with Argentina and President Milei’s government on shared priorities for the benefit of the people of our countries, including“Protection of human rights and democracy, fight against climate change and investments in the middle class”the spokesperson said.
The Biden administration’s support is right on target hours before the first face-to-face meeting between President Milei and Georgieva in Davosan expected meeting that did not materialize when the libertarian leader visited Washington when he was president-elect.
It also comes as the International Monetary Fund’s executive board must decide – presumably at a meeting later this month – whether to give the initiative the green light. outlay of 4.7 billion dollars this was agreed weeks ago by the organization’s technical staff and Milei officials.
This agreement, negotiated virtually and sealed last Wednesday with an IMF delegation in Buenos Aires, relaunched the program that had been “derailed”, whose seventh review had been frozen in November, because the minister and candidate Sergio Massa had launched the ” Platita Plan”. ” and failed to achieve all agreed objectives. The IMF said the program had been “seriously deviant”.
The resurrected and revamped program set new targets for reserves ($10 billion at the end of the year) and the fiscal balance (a 2% surplus is expected), two ambitious goals that seek to meet a tough adjustment plan . Furthermore, he gets important relief to be able to overcome deadlines until April. A “bridge” until the arrival of fresh harvest dollars.
As the IMF said in a statement at the time, the plan “focuses on creating a solid and credible fiscal anchor, together with measures to replenish reserves, correct relative price imbalances, strengthen the central bank balance sheet and create a simpler system of rules. market-based economy”.
The White House likes this pro-market and liberalizing vision proposed by Milei. Also that the president openly says he wants to be an ally of the United States and Israel and to distance himself from regional dictatorships and China.
Days ago, a spokesperson for the National Security Council told La Nación that he welcomed “the efforts of the Argentine government that aim to restore economic stability and we continue to discuss the importance of focusing on maintaining support for the most vulnerable Argentines during difficult times.” adjustment process,” without specifically mentioning the agreement with the IMF.
US support for the program is key to the organization’s executive board which will soon have to approve the program. Being the world’s leading economic power, it is the one that brings the most votes and money and its voice has a fundamental weight in every decision. Some council members – especially Japan and Germany – are tired of Argentina’s continued defaults and are reluctant to give it more opportunities.
Even the Treasury – which, unlike the White House, was very reluctant to continue supporting the government of Alberto Fernández – has now made important gestures with Milei. One signal was the visit to Buenos Aires of key Treasury official Jay Shambaugh, who months ago had suggested ending support for Argentina, and who this time welcomed the new president’s adjustment plan, even as he asked to maintain support for the most vulnerable.
Source: Clarin
