Argentine President-elect Javier Milei met for the first time on Friday with International Monetary Fund (IMF) Managing Director Kristalina Georgieva, with whom he discussed Argentina’s economic situation.
“Today I had an excellent conversation online” with Ms. Georgieva, “where we talked about the great economic challenge facing our country,” ultra-liberal Javier Milei said on X.
For her part, Ms. Georgieva stated on the same social network that these exchanges allowed them to address “the important challenges facing the Argentine economy and the necessary decisive policy actions.”
Latin America’s third-largest economy is struggling to repay a whopping $44 billion loan it took out from the IMF in 2018 due to record low foreign exchange reserves.
Double-digit inflation has been the norm in Argentina for a dozen years, but this year it has slipped to 143% in 12 months, a record in 32 years, while one currency, the peso, continues to lose value.
The outgoing government of Peronist Alberto Fernández renegotiated the loan agreement with the IMF, but the recession that accompanied the COVID-19 pandemic and a severe drought this year hit the Argentine economy, making it difficult to meet the agreements agreed with the institution to achieve goals.
“I talked to him [à Mme Georgieva] the various aspects of our fiscal adjustment plan and our monetary program. “The fund has been cooperative in finding the structural solutions that Argentina needs,” said Mr. Milei.
During his campaign, the far-right president-elect promised a radical fiscal adjustment of up to 15% of Argentina’s GDP as part of a program that includes closing the central bank and dollarizing the country’s economy.
“The IMF is committed to supporting efforts to sustainably reduce inflation, improve public finances and promote private sector-led growth,” Ms. Georgieva continued.
The institution must pay $3.3 billion to Argentina before the end of the year as part of the aid plan.