The Minister of Economy, Silvina Batakisheld a virtual meeting with the managing director of the International Monetary Fund (IMF), Kristalina Georgievain which both agreed to continue working together to promote macroeconomic stability on a growth path.
“Within a framework of trust, we had a fruitful conversation with Georgieva and look forward to continuing to have a positive dialogue,” Batakis said in a press release.
The conversation -the first between Batakis and Georgieva- was also attended -on the Argentine side- by the Executive Director for the Southern Cone before the IMF, Sergio Chodos.
Meanwhile, on the side of the multilateral organization were the head of the Western Hemisphere Department, Ilan Goldfajn, and the deputy managing director of the International Monetary Fund (IMF), Gita Gopinath.
Minutes earlier, through her social media accounts, the head of the IMF said that the communication she had with the new Economy Minister was “very good” and that she hopes to “continue our constructive collaboration” to achieve the objectives.
“Very good call with Minister Silvina Batakis today to discuss the implementation of the Argentina program. We look forward to continuing our constructive collaboration to promote economic stability and inclusive growth in a very challenging global environment,” Georgieva said.
Very good call with Minister @sbatakis today to discuss implementation of #Argentina‘s program. Looking forward to continuing our constructive engagement to promote economic stability and inclusive growth in ?? in a very challenging global environment.
— Kristalina Georgieva (@KGeorgieva) July 6, 2022
The objectives of the IMF program, which former minister Martín Guzmán negotiated to replace the failed loan that Argentina agreed with the organization in 2018, imply that Argentina must return more than US$45 billion to the organization between 2026 and 2036.
To do so, Argentina must meet various quarterly economic goals over the next two years, focused mainly on the accumulation of international reserves by the Central Bank (BCRA), the reduction of BCRA assistance to the Treasury, and a path towards equilibrium tax to be achieved in 2025.
This afternoon, Batakis met at Casa Rosada with President Albero Fernández, with whom he discussed the formation of his cabinet, among other issues.
Yesterday, in radio statements, the minister pointed out that “surely there will be some modifications” in the next reviews of the agreement with the IMF, because “the second semester is very complex” with “many” and “very strong” maturities.
In this regard, the head of the Palacio de Hacienda warned that “the world is changing due to the issue of war”, with increases in international prices that led to an increase in the amounts of energy imports.
“I think the second quarter was over and the second half is very complex, there are many and very strong maturities,” he said.
Referring to these maturities, he pointed out that “there is a very strong one in September, there is also a strong one in July and that, obviously, is going to generate tensions.”
“We have to be realistic and honest: tensions are going to exist, but we have to work together,” since “we have to comply with the agreement,” said Martín Guzmán’s replacement in dialogue with the El Destape Radio station.
In relation to the negotiations for the debt, the Ministry of Economy seeks to agree on a new meeting date with the Paris Club, originally scheduled for today, but which had to be postponed after the resignation of Martín Guzmán.
Batakis stressed the purpose of “coordinating” the work with “all the organizations” in the economic area and indicated that, with the Minister of Productive Development, Daniel Scioli, and the President of the Central Bank, Miguel Pesce, they are trying to “have a route”, which will allow “avoiding jumps in the economy that affect companies, but also people who are scared by these changes”.
