With fresh money, Javier Milei assured that he can accelerate the exit from the stocks

The President’s statements Javier Milei They occurred within the framework of the mission of the organization that is already in Argentina to negotiate a new agreement. The Government wants to “roll up” the commitments for USD 43,000 million and at least USD 11,000 additional to rebuild the balance of the BCRA

The president Javier Milei has confirmed that his government is in negotiations with the International Monetary Fund (IMF) to establish a disbursement schedule that will accelerate the exit from the exchange rate trap in Argentina. These statements were given in the context of the IMF mission that is already in the country to negotiate a new financial agreement.

The government of Milei seeks to refinance existing commitments with the IMF, which amount to USD 43,000 million, and obtain at least USD 11,000 million additionally to rebuild the balance sheet of the Central Bank of the Argentine Republic (BCRA).

This new financing is crucial for the government, since it would allow for more rapid progress in eliminating the dollar stocks, a measure that Milei has promised to implement during his mandate. During an interview with Bloomberg at the World Economic Forum in Davos, Switzerland, Milei explained that negotiations with the IMF focus on the magnitude and sequencing of disbursements.

With fresh money, Javier Milei assured that he can accelerate the exit from the stocks

The president highlighted that the structure of the payments of the commitments and the obtaining of new funds to rebuild the BCRA accounts are key aspects of the conversations. Milei He also stressed that the speed of eliminating the stocks will depend on the amount of funds that can be obtained and how the disbursements are structured.

The Argentine government aspires to reach a new program with the IMF before the end of the first quarter of the year. In official offices there is optimism regarding the support that the arrival of Donald Trump to the White House could imply.

With fresh money, Javier Milei assured that he can accelerate the exit from the stocks

Measures

Milei stated that the lifting of exchange controls is not under discussion and that the measure will be implemented during 2025, although he did not specify whether it will be in the first or second half of the year. The president explained that the possibility of receiving additional financing from the IMF will not increase the country’s total debt, since the foreign currency will be used to cancel the debt that the Treasury has with the BCRA.

Besides, Javier Milei He highlighted that the necessary funds could come from both the IMF and agreements with private investment funds. It is not ruled out that both sources of financing could arrive together. An IMF technical mission, headed by the deputy director of the Western Hemisphere Department, Luis Cubeddu, is already in Buenos Aires to negotiate with Argentine officials. The conversations focus on the structure of commitment payments and obtaining new funds to rebuild the BCRA accounts.

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