Kristalina Georgieva: “Inflation is Argentina’s main problem”

Sergio Massa resumed his duties at the Ministry of Economy on Tuesday after the tour he led in the United States. After arriving in Buenos Aires in the morning, his team continued zoom negotiations with the IMF to approve the second revision of the program and release an outlay of $ 4,000 million this month, ahead of the deadlines facing next week.

Massa held his first meeting in Washington on Monday with the head of the agency, Kristalina Georgieva, who emphasized the minister’s commitment and insisted on achieving the objectives, amid the difficulties of accumulating reserves and reducing the fiscal deficit. “We are still meeting the Fund, we hope it will be approved on Friday, we are working on it”confirmed by an official dispatch.

Georgieva warned him on Tuesday Inflation is the main problem in Argentina, one day before the August data were known, which would show a 6.5% increase per month. “We are at a time when he (Massa) seriously recognizes and obviously seriously recognizes that the problems Argentina faces are very significant. And inflation is at the top of the list,” said the IMF director in public statements.

“It is devastating, especially for the poor in Argentina. So how do we work together to address this problem that has built up over time?” is the challenge, said the Bulgarian economist. “I left (the meeting with Massa) with the feeling of having a partner with whom we can work well,” he added.

In the afternoon Massa met the President at Casa Rosada to discuss the progress of his trip to the United States and the negotiations with the Fund. The minister estimated in Washington that from Friday the technical agreement (staff contract) will be submitted to the Board of Directors of the Fund, after which, once the approval of the authorities is obtained, the planned disbursement will be authorized.