Key meeting between Javier Milei and Kristalina Georgieva for the new agreement with the IMF

The Argentine president Javier Milei prepares for a crucial meeting with Kristalina Georgieva, the managing director of the International Monetary Fund (IMF), in Washington, United States. This meeting will take place in the midst of negotiations for a new financial agreement that will allow Argentina to reinforce the Central Bank’s reserves and accelerate the exit from the exchange rate.

The meeting is part of the journey of Javier Milei to Washington to attend the inauguration of Donald Trump as president of the United States. The meeting between Milei and Georgieva is scheduled for Sunday, and will be the first meeting between the two since the G20 summit in Rio de Janeiro last November.

Key meeting between Javier Milei and Kristalina Georgieva for the new agreement with the IMF

The presidential delegation will be made up of the Secretary General of the Presidency, Karina Milei, the Minister of Economy, Luis Caputo, and the Chancellor Gerardo Werthein. This meeting is seen as a key opportunity to advance negotiations and define the terms of a new financial program that allows Argentina to overcome economic imbalances and regain stability.

The main objective of the Argentine Government is to obtain a new agreement with the IMF that includes a disbursement of between 11,000 and 13,000 million dollars. This fresh financing would allow the country to refinance the $44 billion of loan maturities taken in 2018 under the government of Mauricio Macri and renegotiated in 2022 by Alberto Fernández.

Key meeting between Javier Milei and Kristalina Georgieva for the new agreement with the IMF

In addition, the new agreement would seek to accelerate the exit from the exchange rate trap, a measure that the IMF considers essential to stabilize the Argentine economy. The exchange rate has been one of the main economic restrictions in Argentina in recent years.

Implemented to control the flight of foreign currency and stabilize the exchange rate, the stocks have generated controversy and have been criticized for their negative impact on the economy. The administration of Milei has postponed the elimination of the stocks, but now seeks to advance in this direction as part of its economic strategy.

Key meeting between Javier Milei and Kristalina Georgieva for the new agreement with the IMF

Need

The IMF has pointed out the need for a credible strategy to eliminate exchange controls and make the exchange rate more flexible, which would allow reserves to be accumulated sustainably and restore access to the capital market.

In the context of negotiations with the IMF, the Government has implemented a series of economic reforms that have been praised by the international organization. Kristalina Georgieva recently highlighted the reforms implemented in the first year of management of Javier Mileidescribing them as an example of economic stabilization in recent times.

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