President Javier Milei met with the IMF to discuss Argentina's stabilization and growth plan, as well as the program agreed upon during Alberto Fernández's administration. Although the Ministry of Economy has not confirmed if there will be a new meeting at the G-20, IMF Managing Director Kristalina Georgieva mentioned that they are working on a new joint program.
According to Francisco Cantamutto from the Fiscal Equity Working Space, despite the strategies implemented by the government to stabilize the economy, such as debt swaps and financial agreements, challenges remain in eliminating foreign exchange controls and freeing up the exchange rate.
President Milei, from Davos, stated that an agreement with the IMF would accelerate the lifting of currency controls, although it would not be the only determining factor. Epyca Consulting anticipates a decrease in the value of the dollar in an election year with probable dollarization of portfolios.
The relationship with the United States in these negotiations is highlighted, as they hold a significant percentage in the IMF. Milei's good rapport with Donald Trump could benefit Argentina. On the other hand, it is asserted that an agreement with the IMF would not imply a devaluation, as indicated by the president of the Central Bank, Santiago Bausili.
The G-20 summit is approaching after the IMF mission's visit to Buenos Aires without clear definitions. It is expected that the agreement, once approved, will have to go through legislative processes. The government hopes to finalize the pact within the first months of the year in order to obtain additional funds.
According to Claudio Loser, former IMF director, G-20 support is key as it includes countries with relevant votes. He emphasized the importance of strengthening the relationship with the United States in these negotiations and the possibility of obtaining support for the talks.
