The Minister of Economy, Luis Caputo, confirmed that the agreement with the International Monetary Fund (IMF) will be submitted for Congressional approval and revealed that negotiations are underway to determine if the funds received will be freely available. Initially, the Government had announced that these resources would be allocated to rescue the Central Bank in order to settle the debt that the Treasury has with this entity.
In statements to A24, Caputo explained that whether the funds will be freely available or for budgetary support is part of the ongoing discussions with the IMF. Expert Emiliano Libman pointed out that the international organization sets economic guidelines in its agreements and then conducts reviews to verify compliance.
Sources close to the negotiations indicated that having access to freely available funds does not mean that one can use the dollars according to personal criteria, although they admitted that money is fungible. In this sense, there is a possibility of allocating part of the funds with restrictions and another part as freely available.
Despite the agreement not yet being signed, there have been concerns expressed by the IMF regarding the level of the dollar and the persistence of exchange controls. Given the primary surplus situation in Argentina, there are arguments in favor of opting for freely available funds in light of the eventual arrival of resources from the IMF.
Expert Emiliano Libman dismisses that the IMF would demand a devaluation, although it is unlikely to allow the Government to access the funds without some form of supervision. Some proposals include changes in exchange rate policy, such as establishing a floating band for the dollar.
The negotiation is still ongoing, and both Caputo and Javier Milei are expected to meet with the Managing Director of the IMF, Kristalina Georgieva, to finalize details before the end of February. The discussion includes defining how the funds obtained through the agreement with the international organization will be used.
