The Minister of Economy, Martín Guzmán, met in Arabia with the IMF’s number one, Kristalina Georgieva, who again backed the Argentine government, but in turn agreed to send an upcoming mission to review the Argentine economy.
This is the revision established in article 4 of the IMF statute, whereby an annual scrutiny of the fiscal, monetary and structural variables of a country’s economy is carried out, whether or not it has a credit from the agency. Between 2007 and 2015, the Néstor and Cristina Kirchner governments had refused this type of review, mainly because it meant that the Fund would interfere in the questioned statistics of Indec.
“Minister Guzmán and I had another fruitful exchange on the country’s challenges and the way forward to guarantee more sustainable and inclusive growth for Argentina. I supported the minister, and the leadership of President Alberto Fernández, in his efforts to stabilize the economy and reduce poverty, ”says the statement issued by the Fund at the end of the meeting.
“Based on the recent mission of the IMF technical staff to Buenos Aires, We also discuss the authorities’ plans to guarantee a sustainable and orderly solution of the debt situation in Argentina. In this context, I welcomed the commitment of the Argentine authorities to continue deepening our collaboration, through an Article IV Consultation and timely obtain a program backed by the Fund. The modalities of these next steps will continue to be discussed, ”says another passage.
“As I said from the beginning, our commitment and focus are with Argentina and its population. We want to see that the Argentine economy recovers in a lasting way, that poverty is reduced and that Argentina and Argentina prosper, “Georgieva concluded, who also defined the meeting with Guzmán as” very good “and highlighted the” commitment ”Of the Argentine government.
The meeting took place in the framework of the meeting of finance ministers and presidents of the Central Bank of the G20 that takes place in Riyadh, Saudi Arabia.
In turn, Economía issued the following statement:
Within the framework of the G20 finance ministers forum, which takes place in the city of Riyadh, Saudi Arabia; Economy Minister Martín Guzmán held a bilateral meeting with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, with whom he deepened mutual understanding and outlined the guidelines to be addressed in the next meetings
Guzmán and Georgieva analyzed the steps to follow in the framework of the relationship between Argentina and the IMF, following the conclusions reached after the visit of the agency’s technical mission in Argentina.
During the meeting, the minister conveyed his satisfaction for the constructive exchange on the country’s challenges and the way forward to ensure more sustainable and inclusive growth. In this sense, the head of the IMF emphasized the leadership of President Alberto Fernández and the measures taken to stabilize the economy and protect the most vulnerable. Likewise, Georgieva reaffirmed its commitment to Argentina: “we want to see that its economy recovers in a lasting way, that poverty is reduced and that Argentina and Argentina prosper” .Guzmán told the Managing Director the intention of the Republic to start the Consultations of Article IV of the organism, which the minister considered “a valuable step that will deepen mutual understanding between the Argentine government and the IMF authorities on the way to have a new program with the agency in a timely manner”.
Guzmán participates in the G20 meeting, which will culminate tomorrow Sunday. On Monday he will travel to Washington where he will resume contact with the Fund staff in charge of the Argentine case, including the deputy director of the Western Hemisphere Department, Julie Kozack, and the head of the “Argentine mission”, Luis Cubeddu, who recently visited Buenos Aires.
In Riyadh, Guzmán also has scheduled bilateral meetings with French Finance Minister Bruno Le Maire, with US Treasury Secretary Steve Mnuchin, and with Mexican Finance Secretary Arturo Herrera.
The meeting with Mnuchin is important to obtain the support of the North American government to the negotiations with the Fund and also a political support for the negotiation of the debt with the private creditors.
Argentina had stopped accepting the “revision of Article 4.”, which the Fund annually makes to all partner countries, between 2007 and 2015 for the manipulation of INDEC data. It is the previous step to discuss a new refinancing program with the fund