Economic Analyst: The visit of the IMF delegation to Argentina will not change the market’s view of it

D b a


Posted on: Wed 11 Nov 2020 – 6:36 am | Last update: Wednesday, November 11, 2020 – 6:36 am

Sioban Mawadden, head of the Latin American Fixed-Return Investment Planning Department in the Amrest Peerpont Securities Partnership for Financial Advisors in New York, said that the visit of the IMF delegation scheduled for this week to Argentina “may not change the rules of the game” with regard to the financial market view of the Argentine economy because the impact of this visit on any An “marginal economic program if it exists”.

The economic analyst added that restoring investor confidence in the Argentine economy will not take place unless the reduction of the government’s fiscal deficit is part of any economic reform program agreed upon between Argentina and the IMF.

Bloomberg News quoted the analyst as saying that the pace of increasing foreign exchange reserves in Argentina should be accelerated in order to boost investor confidence.

It is unclear how Argentina can increase its foreign exchange reserves at a rate of between 5 and 7 billion dollars annually under current policies.

Last August, Argentina submitted a formal request to the IMF to start negotiating a new financing program to replace the 2018 agreement that failed to save Argentina from its economic crisis.

According to the letter sent by the Argentine government to Kristalina Georgieva, Director of the International Monetary Fund, Argentine officials want to start consultations before the approval of the program, which will include dealing with installments owed by Argentina to the IMF from the previous program, worth 44 billion dollars.

The letter, which was posted on the Twitter social networking site, praised the “constructive relations” with the fund so far, adding that the government wants the new program to avoid the problems that were in the previous program.

–