The IMF board has analyzed the arrival of Batakis and the program with Argentina

The Board of Directors of the International Monetary Fund he met on Friday to discuss the Argentine program for the first time since the minister’s departure of Economics Martín Guzmán and his replacement by Silvina Batakis.

The conversation about our country took place at an informal meeting, the agency reported Reuters. The technical staff of the Fund informed the axis on the Argentine situation and on the new authorities with which they will have to continue to negotiate the implementation of the loan of 44,000 million, the largest in the history of the organization.

Fund staff said Batakis, who took office on Monday, was selecting his team and indicated that, once ready, first contacts between IMF technical officials and the new Argentine staff would take place.

There was already a first contact on Wednesday with a video call between Batakis and Kristalina Georgieva, the agency’s chief executive, and the minister also spoke with Ilan Goldfajn, director for the western hemisphere.

At the board meeting, the Fund staff also informed the directors they kept an eye on market conditions, which was shaken by the change of minister and brought some of the Argentine dollar bonds now trading below 20 cents.

The IMF did not respond to a question for Clarione about the meeting.

According to sources told Reuters, The meeting was attended by Ilan Goldfajn and Julie Kozack, head and deputy director of the IMF’s Western Hemisphere Department, as well as Luis Cubeddu, head of the mission in the country. There was also Sergio Chodos, who will continue to be Argentina’s representative before the IMF.

The Fund seeks to continue on its way after Guzmán, who was the architect of the agreement, resigned on Saturday as tensions within the ruling coalition sparked a series of rumors about the future of the program and the economic crisis.

The arrival of Batakis, ally of Vice President Cristina Kirchner, has generated worries in Washington and Wall Street, what they fear a shift towards populist policies and an even greater expansion of state spending, while it is not possible to lower inflation, which some expect this year to be around 80%.

Analysts and investors consulted by Clarione they expressed concern that the new minister may attempt to change the terms of the agreement with the IMF. However, after discussions with Batakis, the CEO He said the minister had promised to continue with the goals of the agreement.

The board completed the first review of the fund’s Extended Facilities (EFF) program on June 24 and released $ 4 billion after the Fund said Argentina met all quantitative targets as of late March 2022 and accomplished progress towards the implementation of structural commitments under the program.

However, it is believed that the second revision (which covers the quarters of April, May and June) will be very difficult to accomplish as planned. Experts already speak of a possible renunciation or forgiveness.