IMF and World Bank Meetings: Luis Caputo’s Economic Delegation Optimistic about New Program with Argentina

Luis Caputo, the Minister of Economy, will be traveling to Washington this Wednesday to participate in the Spring Assembly of the International Monetary Fund (IMF) and the World Bank, meet with Treasury and IDB authorities, and give a conference organized by JPMorgan. Joining him on the trip at the last minute is Nicolas Posse, Chief of Staff, who will also have meetings with White House officials on his agenda.

The economic delegation that will accompany Caputo includes the Secretary of Finance Pablo Quirno and Santiago Bausili, head of the Central Bank. They will hold several meetings within the framework of the organization’s Assembly and the G20. Although an official meeting with IMF director has not yet been confirmed, it is expected to take place in the Pennsylvania Street building during their visit.

During their trip, economy officials will finalize the eighth revision of their program, which is expected to be completed in mid-May and would allow for a disbursement of about US$770 million. The Government is optimistic about a new program that expands their loan to Argentina, with some US$15,000 million that would primarily be used to address financial challenges. However, discussions on this are still considered “premature.”

In Economy circles, there is excitement about not needing waivers or pardons in this review process – something that hasn’t happened in decades. The government is confident that they have met their goals set by their program in terms of reserves and fiscal deficit in a “spectacular” way. They also celebrate a slowdown in inflation projections which are showing a decline to 15% by the end of year and 4.5% by 2025.

Negotiations between technicians continue virtually or in person with a focus on improving quality of fiscal adjustment without disproportionately impacting vulnerable sectors. The role of Treasury is crucial for any negotiations or new programs with IMF as United States holds significant influence over decision making as main shareholder . Caputo and Posse will also meet Inter-American Development Bank (IDB) president and give JPMorgan conference . Their trip also includes White House meetings to discuss economic issues security Washington closely follows Argentina’s economic plan with treasury playing key role future negotiations