Alejandro Werner warns about the agreement between Argentina and the IMF: “It is a weak program”

Alejandro Werner warns about the agreement between Argentina and the IMF: “It is a weak program”

The principle of agreement that the Government reached with the IMF it is “weak” because the central points of the understanding that have been made public so far show “a very weak program,” he warned Alexander Wernerthe former director of the international organization for Latin America.

Kirchner Maximum Effect: Kristalina Georgieva now sees “limitations” to the agreement with the IMF

“The announcements that have been made so far show a very weak program,” he considered werner and expanded on the idea by arguing that “from a structural point of view, it does not have a package of measures that one thinks could raise Argentina’s competitiveness and open the way for sustainable growth.”

Along these lines, the former official of the IMFas transmitted to the journalist Andrew Oppenheimer In a note published by the newspaper El Nuevo Herald, he defined as “weak” the understanding between the agency and the administration of Alberto Fernandez after the negotiations carried out by the Minister of Economy, Martín Guzmán.

According to Werner, “the IMF faced the dilemma of supporting a program in which it does not fully believe, or insisting on a program that Argentina would never implement,” and he assured that in the end the organization “decided to support the best possible program that this government is willing to sign”.

The statements of the former official of the Fund for the region emerged a day after the virtual conference that Kristalina Georgievthe head of the organization, toasted on Thursday and in which she warned that she sees limitations on what can be done in Argentina, referring to the immediate political opposition to the agreement that came from Kirchnerism after its announcement last Friday.

The statement was made at a time when President Alberto Fernández is on a tour of Russia and China, in which he referred to the agreement with the organization and his “critical” view of the Fund. It also took place after the political upheaval that caused within the Frente de Todos the resignation of Maximo Kirchner to the presidency of the official bloc in Deputies.

Georgieva also called for an economic plan that would increase tax revenue and improve public spending. However, the agency admits that the program that is being developed and that was installed on the public agenda after an initial understanding was reached last week, needs much broader support from society, the managing director said Thursday. From the bottom.

The agency recognizes, however, the potential limits that exist to making changes in Argentina in the coming years, due to the “opposition of the most radical part of the left of the ruling Peronist coalition in the country”, indicated the Bloomberg agency, in relation to the Fund’s position.

For Georgieva, both the changes in taxes and at the level of public spending are “two areas of structural conditionality that would come in the agreement at the personnel level,” the official assured in dialogue with journalists, at a virtual press conference.

He added: “Our main focus is to get Argentina off this very dangerous path of high inflation.”

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