4 hours Ago By Facundo Iglesia
Economy Minister Luis Caputo said Thursday that the Argentine government is engaged in “informal talks” with the International Monetary Fund (IMF) about a new deal that could bring fresh funds to the country. The same day, Fund spokeswoman Julie Kozack confirmed that country authorities are “exploring” a potential new agreement. Caputo also said that Argentina is set to have a “closer relationship with the United States,” referencing Donald Trump’s recent electoral victory.
“Agreements that before would have seemed more difficult are now possible,” he told news station TN. Milei, a fervent Trump supporter, has called the Republican’s win the “greatest political comeback in history.” Caputo added that authorities from Argentina and the IMF are discussing how much money could come with the agreement and “how that money will come in.
” “Having US$1 billion from the start is not the same as having US$12 billion,” he pointed out. The minister also said that they are having discussions about monetary and exchange rate policy. Argentina is currently undergoing a harsh reserve scarcity and the new government is keeping strict foreign exchange restrictions.
The administration has consistently said that it needs fresh funds to lift currency controls, known as cepo . In her usual press conference, Kozack said that “authorities are now exploring the option of moving to a new fund arrangement.” She added that the government’s implementation of the program is “delivering impressive results,” such as “a sizable reduction in inflation, as well as a fiscal surplus and improved reserve coverage.
” When a journalist asked her about the country maintaining exchange restrictions, Kozack said that “to sustain the durability” of Argentina’s results, it is “critical to maintain a consistent set of policies, including on fiscal, monetary and foreign exchange issues.” President Javier Milei held a meeting with IMF Managing Director Kristalina Georgieva this week, where they spoke about the country’s current program and potential negotiations for fresh funds. The country is currently under an Extended Fund Facility agreement with the Fund, signed in 2022 during Alberto Fernández’s administration.
That deal was struck after that Peronist government renegotiated the US$44 billion debt former President Mauricio Macri had acquired in 2018. Caputo was one of that deal’s original negotiators..
