Milei Will Hold Another Meeting With Georgieva to Finalize the Agreement With the Imf.

The Argentine Government accelerates negotiations with the International Monetary Fund (IMF) to strengthen the Central Bank's reserves and close the exit of the currency control.

President Javier Milei and the Minister of Economy, Luis Caputo, will meet with the IMF's Managing Director,  Kristalina Georgieva, at the organization's headquarters in Washington.

A key meeting with the IMF

This will be the fifth meeting between Milei and Georgieva since the beginning of his term.  In previous meetings, the IMF head highlighted the advances of the Argentine economic plan, although some discussion points persist.

According to official sources,  the negotiations are in their final stage, and only the total amount of financing and the disbursement schedule remain to be defined. The exchange rate scheme would also be part of the agreement, which could  accelerate the exit of the currency control.

Details of the agreement under negotiation

The new program with the IMF would not represent an increase in the country's net debt, but rather a change of creditor. The Government would use IMF funds to cancel Non-Transferable Letters held by the Central Bank, which would transform intra-public sector debt into a commitment with the international credit organization.

Caputo avoided specifying the amount of the new program, although Milei mentioned in the past figures close to USD 11 billion, without official confirmation from the negotiators. However, the Minister of Economy assured that the funds will be sufficient to recapitalize the Central Bank and strengthen economic stability.

Impact on the exchange rate scheme

One of the central points of the discussion with the IMF is the exchange rate policy. Within the framework of the agreement, the Government would have already defined the exchange regulation scheme after the program's implementation.

• The "crawling peg" will be maintained, although at a reduced pace.
• The exporter blend dollar will continue, allowing 20% of foreign currency to be settled in the cash market with settlement.
• The relaxation of exchange restrictions will be analyzed, including the repatriation of profits for foreign companies.

Expectations and next steps

The Government trusts that the agreement with the IMF will stabilize the economy and generate confidence in the markets. Once the technical understanding is reached, the program will be sent to Congress for approval, according to Minister Caputo.

Although key definitions are still missing,  the IMF's support could be decisive for the implementation of future economic measures, including a potential exit from the currency control.