MercoPress. South Atlantic News Agency

IMF mission arrives in Buenos Aires to discuss US$ 11 billion loan

The IMF mission is headed by Western Hemisphere Department Deputy Director Luis Cubeddu

An International Monetary Fund (IMF) team landed in Buenos Aires Wednesday to discuss Argentina's eligibility for a US$ 11 billion new loan to make up for the South American country's currently negative reserves. The mission is headed by the IMF's Western Hemisphere Department Deputy Director Luis Cubeddu.

As a result of this trip, Argentine Economy Minister Luis Toto Caputo, who traveled with President Javier Milei to attend Donald Trump's inauguration and also participated in a meeting with IMF Managing Director Kristalina Georgieva, sped up his return and skipped the head of State's appearance at the World Economic Forum (WEF) in Davos (Switzerland) on Thursday. “I could not accompany the president to Davos because it will be three days of hard work with the Fund's mission and key measures we are designing,” Caputo explained on X.

The current IMF delegation is to produce preliminary results which would need further reviews before the disbursement gets the nod from the IMF's board even though Georgieva praised the Libertarian administration for its achievements in little over a year in office. However, the Fund insisted on lifting the currency exchange stocks followed by a more flexible monetary policy. Hence, it remains to be seen whether the IMF would acquiesce to additional funding before those changes are implemented, former Argentine representative to the IMF Héctor Torres told local media.

As per the Extended Fund Facility (EFF) in force since 2022 and ending last month, two technical reviews are still pending and will be unified. These reviews are essential to validate compliance with fiscal and reserve accumulation targets as bargaining continues over the next few days.

According to Milei, Argentina would end its anything-but-Libertarian exchange rate controls if the IMF would agree to the US$ 11 billion deal. The IMF experts are to stay in Buenos Aires until Sunday, although talks are expected to continue beyond their departure. “I believe that the result will be a more dynamic and prosperous Argentina,” Georgieva said after meeting with Milei.