LONDON — The International Monetary Fund’s board of trustees met Friday to discuss Argentina’s $44 billion program for the first time since Silvina Batakis was named economy minister, two other people with direct knowledge of the assembly said.
In an informal meeting, fund staff said Batakis, who was sworn in Monday, is in the process of installing his equipment and that once ready, the first contacts between IMF technical officials and new Argentine officials will be established.
Staff also informed the Board that they were closely monitoring market conditions, as some of Argentina’s dollar bonds were now trading in very troubled territory at less than 20 cents on the dollar, one of the other people said.
Both asked to be identified because the interviews are confidential.
Argentina’s Economy Ministry and imf did not respond to a request for comment.
The aim of the assembly is to inform the board of directors about the scenario in Argentina, the fund’s largest debtor, the resources said.
The assembly was attended by Ilan Goldfajn and Julie Kozack, Head and Deputy Director of the IMF’s Western Hemisphere Department, as well as Luis Cubeddu, IMF Country Chief of Mission.
Sergio Chodos, who will remain Argentina’s representative to the IMF, will also be present.
Former Economy Minister Martin Guzman, the architect of the South American country’s agreement with the IMF, resigned Saturday over tensions within the ruling coalition over how to handle the economic crisis.
His departure has raised considerations of a shift toward populist policies and state spending in the country where inflation exceeds 60 percent.
Foreign bonds fell amid fears that the new government would seek to replace the terms of the IMF deal.
The Board of Directors finalized the first review of the Extterminated Financing Facility (EFF) program on June 24 and released $4 billion after the fund said Argentina had met all quantitative targets by the end of March 2022 and had made progress in implementing the program’s structural commitments. .
Separately, on Friday, the Argentine said he had made scheduled invoices to the Fund for about $1. 3 billion.
Earlier this week, Batakis told the IMF that he supported the fund’s program objectives and would work constructively with the international lender.
IMF chief Kristalina Georgieva said Wednesday she had a “special call” with Batakis about continuing the program.
Following a personal debt restructuring and an agreement with the IMF, Argentina still has to pay some $2 billion it owes to the Paris Club of creditor countries. Talks were originally scheduled to continue this week, but the assembly in the French capital postponed following Guzman’s resignation.
A Paris Club source said Thursday that the new economy minister will have to commit to an IMF program for the club to open talks. (Report through Jorgelina do Rosario; written through Rodrigo Campos; Editing via Tomasz Janowski)
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