Argentina revives the settlement with the IMF after the failure of this system agreed with Peronism | EUROtoday

It is the primary time within the in depth historical past of relations between Argentina and the IMF that the Buenos Aires authorities proposes a extra drastic settlement than the one proposed by the Fund.

• International Milei tries to beat the skepticism of the White House and the IMF with a lightning go to to Washington

Argentina and the International Monetary Fund (IMF) introduced this Wednesday an settlement to relaunch this system agreed with the earlier authorities and that the previous Minister of Economy Sergio Massa I utterly didn’t comply.

“The program does not include taking on new debt,” emphasised the Minister of Economy, Luis Caputo, accompanied by the president of the Central Bank, Santiago Bausili, at a late-night press convention in Buenos Aires.

Argentina will obtain 4.7 billion {dollars} to pay maturities of the debt of 45 billion {dollars} contracted in 2018 by the federal government of Mauricio Macri, of which Caputo was minister.

The settlement, confirmed concurrently by the IMF, is at a technical stage, and the inexperienced mild from the board of administrators of the Washington-based group remains to be lacking.

“The new understanding comes after the failures of the programs of Mauricio Macri and Alberto Fernndez and was built from the first measures taken by the government of Javier Milei to stabilize the economy, rebuild the Central Bank’s reserves and reach zero deficit,” highlighted “La Nacin.”

“The core of the plan is a strong fiscal squeeze – higher than that contemplated in the original agreement – designed from a menu of broad spending cuts, including the paralysis of public works, and tax increases, an orthodox strategy that fits perfection with the Fund’s recipes,” he added.

It is the primary time within the in depth historical past of relations between Argentina and the IMF that the Buenos Aires authorities proposes a extra drastic settlement than the one proposed by the Fund.

Massa, Minister of Economy within the final yr and a half of the Fernández authorities, obtained approval in August 2022 for the fifth and sixth opinions of this system and a disbursement of seven.5 billion {dollars}. Once the deal was closed, Massa, who was additionally Peronism’s presidential candidate, broke all agreements, beginning with an enormous tax reduce.

The settlement with the IMF is sweet information for Milei, who insists that the Argentine financial system is on the point of disaster and calls for a delegation of powers from Parliament to confront the disaster.