Given the almost certain decision of the International Monetary Fund (IMF) not to enable negotiations in the short term for a new program that includes fresh funds for the country, the economic team sought to defuse the expectations that were generated around the trip to the United States and avoid the classification of “failure” being attached to it.
The Minister of Economy, Luis Caputo, the Vice Minister José Luis Daza, the Secretary of Finance, Pablo Quirno, the President of the Central Bank, Santiago Bausili, and the Vice President of the entity, Vlademir Werining, arrived in Washington this Monday to participate in the Annual Meeting of the IMF and World Bank.
Although the reason for this qualified delegation is due to the institutional participations that they must face, the political and economic arc is attentive to the parallel agenda that they will develop in pursuit of obtaining financial aid for the country.
Policy
Economy. The trade surplus was reduced by half in September due to the reduction of the Country tax
Knowing that the chances of the IMF enabling a dialogue for new financing are minimal and with expectations on the rise, Quirno went out to distance himself.
The delegation left Buenos Aires on Sunday night and on a stopover prior to disembarking in Washington, the secretary was concerned about interacting in an “X” space in which advisor Felipe Nuñez participated, along with agents of the financial system.
When Quirno spoke, he was forceful: “We are going through meetings of the G20, the G24, the IMF, the World Bank and the IDB, all concentrated in three or four days. And this generates an expectation of results that are not such.”
Policy
Economy. Wholesale inflation in September was 2% and was equal to the devaluation rate
Thus he made it clear that the primary objective is not to directly face a new conversation with the IMF, which adds uncertainty to the repeated question of “when will we get out of the trap?”
Quirno expanded the application of cold cloths: “They are part of the constant conversations we have every day with all the international relationships we have,” he insisted.
And he added: “The issue with the organizations has changed because now Argentina complies and exceeds what it said it was going to do. That puts us in a different situation and at least they want to listen to us.”
The activity of the economic team will extend until Friday and Caputo’s official agenda includes participation in the Assembly of Governors, in the Development Committee of the World Bank and the IMF, in the Council on Foreign Relations (CFR) and in the Committee International Monetary and Financial Council (IMFC).
Policy
Milei Government. In September, the Nation added the ninth consecutive month of surplus
The calendar of meetings distributed by the Treasury Palace was brief and without further details. Within the list released there is no direct meeting with the head of the IMF, Kristalina Georgieva, although it is assumed that it will occur even if it is informal. It was also not reported what activities the rest of the members of the delegation will carry out.
Possibly with regard to direct negotiations with the IMF, it will be necessary to closely follow the steps of Daza, who would be the one designated by Caputo to direct the conversations.
The economist, who landed a few weeks ago at the Treasury Palace to take the place left by Joaquín Cottani, has well-established ties with the Washington bureaucracy where he developed much of his professional career.
For the moment, the financial market does not seem to be concerned with the delay in the start of talks, given that an agreement would guarantee the payment of the US$23 billion that the country must face in 2025.
Policy
Mercy. Anses: liquefaction and end of moratorium, the Government’s plans for retirements and allowances
At least that is reflected in the price of Argentine assets.
Although there was a small correction in the bond prices this Monday, the values continue to reflect a certain confidence among investors that the country will be able to assume its debt commitments.
The reference bond AL30 lost 0.3% and closed at US$61.93 in line with the rest of the public securities, which brought the Country Risk back above 1,100 points.
Policy
Economy. The Central Bank continues to cool the exit from the stocks
The dollar had a bullish behavior, with the “blue” climbing to $1,240 -$1,263 in Córdoba-, while the MEP advanced to $1,167 and the Cash with Settlement to $1,194.
Meanwhile, the Central Bank continued with the buying streak and added US$ 23 million to reserves. So far in October it has already incorporated US$ 784 million.
