The Minister of Economy, Luis Caputo, intervened to dispel rumors of an imminent devaluation in the context of negotiations with the IMF. In this regard, he expressed that the circulating information regarding the agreement with the international organization was not accurate. His intervention occurred in a context of uncertainty due to the lack of details about the conversations held between Argentine officials and representatives of the International Monetary Fund in recent days.
Caputo expressed his dissatisfaction with the situation by commenting: "None of what is being said about the agreement with the Fund is correct." He also added: "It's hard to be wrong about everything, but they are managing it."
Argentina's negotiations with the IMF have sparked speculation. Major Wall Street banks and former officials of the organization had taken for granted a forthcoming agreement, which would include an initial disbursement of up to US$ 10 billion with a term of 4 years. This would be conditioned on lifting the capital controls (exchange rate control) and the unification of the exchange rate with a 30% increase in the dollar.
An analysis from Bank of America, the second largest bank in the United States, highlighted Argentina's achievements in reducing inflation and fiscal adjustment, the latter representing 5% of GDP to achieve zero deficit in 2024 through a 30% real reduction in public spending. It is estimated that the country will receive a significant initial disbursement and that most of its debt with the IMF will be restructured until 2028.
Bank of America also projected a growth in Gross Domestic Product (GDP) of 4.5%, a figure slightly lower than the government expectation of 5%. This would come after an estimated recession of 2% for this year. It was also ventured that the parties could reach an agreement on an Extended Fund Facility program by April.
