Point by point: what the IMF demands of Javier Milei, after the new agreement

The International Monetary Fund (IMF) has recently praised the Argentine president Javier Milei for the economic reforms implemented during his first year in office. However, the agency has also pointed out the need to make additional adjustments to ensure the country’s economic sustainability.

Among the recommendations of the IMF These include the elimination of the dollar trap, the reduction of subsidies and the implementation of retirement and tax reforms. The managing director of the IMF, Kristalina Georgieva, highlighted the progress made by the government of Javier Mileicalling his economic program “one of the most impressive cases in recent history.”

Georgieva stressed that the reforms implemented have allowed a solid stabilization and growth program, which has generated a profound impact on the Argentine economy. These statements were made in Washington, where Georgieva praised the country’s economic direction and the results obtained in the first year of administration. Milei.

Despite the praise, the IMF has put forward a series of recommendations to strengthen the Argentine economy. Among the main suggestions is the elimination of the dollar stocks. The organization insists on the need to release exchange restrictions and unify the exchange rate, which would possibly lead to a devaluation of the peso.

Point by point: what the IMF demands of Javier Milei, after the new agreement

According to the IMF, this measure would allow the Central Bank of the Argentine Republic (BCRA) to accumulate more international reserves and make the country’s debt more sustainable in the long term.. Another important recommendation from the IMF is the reduction of energy and transportation subsidies.

The agency considers that these subsidies represent a significant burden on the national budget and that their reduction could contribute to improving fiscal sustainability. In addition, the IMF suggests that interest rates should be positive in real terms, that is, higher than inflation, to attract investments in pesos and strengthen monetary demand.

Point by point: what the IMF demands of Javier Milei, after the new agreement

Reform

The IMF has also pointed out the need to carry out pension and tax reform. Regarding the retirement reform, the organization suggests improving the sustainability of the pension system, which could imply changes in the retirement age, contributions and benefits.

The tax reform, for its part, seeks to simplify the tax system, eliminate distortive taxes and encourage investment. These reforms are considered crucial to ensure the country’s long-term economic and fiscal stability. The government of Javier Milei is in the middle of intense negotiations with the IMF to obtain a new agreement that will allow access to additional financing of between 11,000 and 13,000 million dollars.

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