MercoPress. South Atlantic News Agency

No signs of imminent IMF disbursement after Milei meets with Georgieva

The IMF told Milei it was concerned about certain policies undertaken by the Argentine government

Argentine President Javier Milei met Thursday with International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Washington, D.C., to discuss the South American country's stabilization and growth plan and advance negotiations for a new loan.

The Bulgarian economist praised the Libertarian administration's results and confirmed that teams from both sides continued to work towards a new program.

“Today I welcomed President Javier Milei to the IMF to discuss Argentina's stabilization and growth plan, which is yielding significant results,” Georgieva posted on X. “Our teams continue to work constructively in pursuit of a new program with the IMF,” she added.

However, no news regarding a possible disbursement was announced after the encounter. Argentina's Economy Minister Luis Toto Caputo insisted that only details were missing, particularly regarding the amount of disbursements.

The IMF expressed concerns over certain government policies, including the exchange rate lag and interest rates, which may affect reserve accumulation. The Argentine government aims to secure an extra US$ 11 billion to strengthen Central Bank (BCRA) reserves and alleviate financial constraints.

Milei has insisted he would not devaluate the Argentine peso although between June and December, the exchange rate lag triggered a current account deficit that has lasted for seven months and is expected to worsen in January after tourist outflows showed higher levels than usual.

Joining Milei at the IMF headquarters were Caputo, Presidential Secretary, and sister Karina Milei, Presidential Spokesman Manuel Adorni, and Foreign Minister Gerardo Werthein. It was the Argentine leader's second meeting with Georgieva in the last thirty days.

Before the IMF meeting, Milei also met with Elon Musk, gifting him a chainsaw, symbolizing his stance on government efficiency and public sector downsizing. Milei's visit is part of broader efforts to negotiate financial support and strengthen Argentina's economic position.