Key week for the IMF and Argentina: Luis Caputo will travel to Washington for the IMF’s spring meeting

Economy Minister Luis Caputo will travel to the United States this week to meet with representatives of the International Monetary Fund (IMF). He will participate in the Spring Meeting convened annually by the organization together with the main ministers of finance and central bankers, where he will seek to bring positions closer together in view of a new agreement and a greater disbursement of dollars. The meeting will take place in Washington on April 17, 18 and 19, where finance ministers and bankers from all the member countries of the organization will meet to discuss issues of international relevance. In addition, at this conclave, the IMF will release the new global outlook and updated projections for the world’s major economies. In the latest staff report prepared by the IMF’s technical team, it was estimated that Argentina would have a recession of 2.8% and an average inflation of 250% in 2024.Caputo will try to bring positions closer with the authorities of the organization to obtain new agreements with the organization and obtain funds to be able to lift the exchange rate clamp as soon as possible. Caputo also plans to meet with Treasury Secretary and Joe Biden’s top economic adviser, Janet Yellen. Beyond Caputo’s intentions, the IMF celebrated the policies implemented by the government, although they expressed concern about the brutal adjustment in the national public accounts, which fell more heavily on pensions and social policies. The government postponed the payment to the IMF of USD 1,940 million in April maturitiesThe Milei government, through the intervention of the Ministry of Economy, made the decision to unify the payment of the maturities corresponding to the agreement with the IMF by the end of the month. The libertarian administration will pay the total amount of USD 1,940 million on the last day of April, after the spring meeting that Caputo will attend. Thus, the government will exercise its right to postpone the transfers until the last day of April, a resource that, previously, was implemented by the former Minister of Economy. The $1.94 billion is the three payments planned for this month and represents the first shipment of funds to the IMF since January of this year. In detail, this Tuesday, April 9, approximately 1,292 million dollars were to be paid, which is 975 million Special Drawing Rights (SDRs) and, a week later, USD 643.6 million (487.5 million SDRs) was scheduled to be sent, and at the end of the month, another 88 thousand dollars. Then, at the beginning of May, the government has another commitment ahead of it, since on the 1st it must pay another USD 857 million.

Original source in Spanish