President Javier Milei presented an important part of the agreement with the IMF in Congress, which has helped to dispel some doubts of international investors in recent weeks. The disclosure on social media of a virtual meeting between IMF representatives, the Minister of Economy, and the Central Bank President generated some optimism in the markets that were eager for clarity about the future.
One aspect of the agreement would be to allocate funds to rescue non-transferable treasury bills at the Central Bank, which would help strengthen reserves and facilitate a possible exit from the currency controls. The organization of the exchange and monetary regime is one of the main concerns of investors, despite the official position that the exchange rate is not overvalued.
The statements from IMF spokespersons during a conference will be crucial in determining the level of confidence that the markets grant to the country. The increase in country risk last week made access to financing in international markets difficult, surpassing the threshold of 400 points. The intervention of Luis Caputo, outlining the progress of the agreement in Congress, helped to stabilize the situation.
The agreement with the IMF could reach up to 20 billion dollars, which would include refinancing of maturities until 2028 and fresh funds of 8 billion. The presentation of a report by UBS, prepared by an Argentine strategist based in New York, also contributed to easing tensions in the markets.
