A new IMF mission arrives tomorrow to try a new disbursement

A new mission of the International Monetary Fund will arrive tomorrow for the fourth time in Buenos Aires to review the numbers of the economy and meet with representatives of the Government, businessmen and members of the opposition.

A spokesman for the Fund said yesterday in Washington that an IMF team headed by Roberto Cardarelli will arrive in Buenos Aires on May 8 “in the context of the fourth review of Argentina’s economic plan that supports the 36-month Stand-By Agreement.”

“During the mission, the IMF team will meet with government officials and the Central Bank, as well as representatives of the private sector, academia and civil society,” Alejandro Werner, Director of the IMF’s Western Hemisphere Department, will also join a part of the mission, as has happened on other occasions. “

Cardarelli and his team have already been three times in Buenos Aires. It is the normal procedure to prepare a report that is known as “staff report”, which will be submitted to the executive board to approve or not a fourth disbursement of the loan of 57,000 million dollars. The last tranche was approved at the beginning of April, when 10,800 million were granted.

This time the mission will come at a calmer moment, after last week the IMF accepted the free intervention of the Central Bank within the bands to be able to stop the volatility of the dollar that worried the Government and the Fund, mainly due to the impact in inflation.

As usual, the mission will meet with government officials and the Central Bank, but also with businessmen, trade unions and members of the opposition, in an election year and at a time when fundamental agreements between different parties are being discussed. The future relationship with the IMF and how to repay the loan will surely form part of the agenda of these political pacts. Cardarelli has already met other times with Roberto Lavagna, Sergio Massa, Juan Manuel Urtubey and Axel Kicillof, among others.

This time the mission will also be integrated by Werner, a more political official, something that has not happened in previous moments. But from the Fund they emphasize that it is not for any special circumstance but because this time their agenda allows it.

Werner is just today in Lima, where at a conference in the Chamber of Commerce, said that “Argentina’s transition from a highly controlled economy to one more oriented to free markets is proving to be more complex than expected,” according to the report. Bloomberg agency.

However, the official showed optimism about the recovery of the economy. He noted that measures to control inflation and balance the budget resulted in several quarters of economic contraction, although “growth should be positive from the second quarter.”

In its latest regional panorama, released in Washington during the Spring Assembly of the agency, last month, the IMF had projected something similar: “It will return to growth in the second half of the year, when real income and agricultural production recovers rebound after last year’s drought, “they wrote in the global perspectives report. They estimated for this year a fall of -1.2% and only in 2020 growth to 2.2%.

Werner also referred yesterday to the price index, which has exceeded the agency’s forecasts several times, and said that the growth in the monetary base for the rest of 2019 “seeks to put an end to the inflation trend.” Last week, the IMF agreed to release the Central Bank so that it can intervene within the flotation bands and thus be able to curb the volatility of the dollar, one of the main causes of the price rise.

In addition, Werner predicted, in addition, that Argentina should end 2019 with a balanced budget, one of the goals of the standby agreement of 57,000 million dollars.

Werner explained the situation of the Latin American economy and said that the IMF foresees growth of 1.4% this year and 2.4% in 2020.

Leave a Reply

Your email address will not be published. Required fields are marked *