The recent departure of Rodrigo Valdés, director of the Western Hemisphere Department of the International Monetary Fund (IMF), has marked a turning point in the negotiations between Argentina and the international organization.
This change has accelerated the possibility of reaching a short-term agreement that includes fresh funds and the support of international banks, which could have a significant impact on the Argentine economy. Negotiations between Argentina and the IMF have been a recurring theme in recent years, especially due to the country’s economic situation.
Javier Milei’s administration has been seeking a new agreement that would allow the Central Bank’s reserves to be stabilized and reduce country risk. The departure of Valdés, who had been criticized by Milei, has unlocked a level in the negotiations that could facilitate the arrival of an understanding before the end of the year..
The new agreement that is being negotiated with the IMF It is expected to be a classic stand-by agreement, with a period of between two and four years. This type of agreement would allow Argentina to access a package of more than 10 billion dollars, with the possibility that the final figure could exceed 15 billion dollars.
These funds would be crucial to strengthen the Central Bank’s reserves and guarantee the payment of the debt maturities in dollars for the next year and a half. In addition to the disbursement of part of the Central Bank’s own IMFThe agreement would also consolidate ongoing negotiations with international banks to obtain a REPO loan.
This credit, which is used to guarantee the payment of the debt, would reduce the risks for financial institutions and make the requirements for closing the operation more accessible. The departure of Rodrigo Valdés has been seen as a positive sign by the Argentine government, which hopes that this change will facilitate negotiations.
Encounters
Luis Cubeddu, who has been appointed to replace Valdés, was already working with Argentina on the implementation of the current program, which could speed up the process. President Javier Milei is scheduled to travel to New York on September 23 to give his first speech before the United Nations.
During this trip, the possibility of high-level meetings with representatives of the IMF and the World Bank, which could mark the beginning of formal talks for the new agreement.
