Former International Monetary Fund (IMF) director Claudio Loser expressed his opinion on the new agreement the government of Javier Milei seeks to finalize with the international organization. Loser stated that this agreement will lead to an increase in Argentina's external debt.
"I regret to agree with former president Cristina Kirchner on this issue," commented Loser, referencing Kirchner's previous criticisms of President Milei for seeking a deal with the IMF similar to that made during Mauricio Macri's administration.
Loser pointed out that the proposed agreement with the IMF aims to strengthen the balance of the Central Bank (BCRA), thereby facilitating the process of disinflation and the lifting of currency restrictions. However, he expressed doubts about whether the BCRA's reserves would remain intact or whether the IMF would demand an increase, beyond the loan granted.
The former IMF director emphasized that the international organization would not allow the use of reserves to maintain the parallel exchange rate to the official one and that, probably, the funds would not be delivered all at once in the next program review.
Last Thursday, Milei's government announced the intention to send an Urgent and Necessary Decree to the National Congress to obtain support for the agreement with the IMF. According to the official statement, this financial operation aims to cancel the National Treasury's debt with the BCRA, which would contribute to the reduction of total public debt.
