:quality(85)//cloudfront-us-east-1.images.arcpublishing.com/infobae/IJHT3WXPSBB4JHR5GEFE4YC5VA.jpg "Georgieva met with Massa and told him that IMF staff had approved the achievement of the targets set for the last quarter of 2022. 1")
(From Bangalore, India) At 12:07 p.m. – eight and a half hours less in Argentina – Kristalina Georgieva entered bilateral room 5 of the Marriot Hotel Convention Center to begin a formal meeting with Sergio Massa aimed at analyzing the global agenda and addressing the complex situation in the country.
The IMF would modify the program with Argentina due to the war in Ukraine and the severe drought
Sergio Massa in India and his technical team in Washington are negotiating against the clock an agreement which would be announced today after the meeting he will have with the managing director of the Fund, Kristalina Georgieva
The Managing Director of the International Monetary Fund (IMF) arrived accompanied by her Deputy Managing Director Gita Gopinath and two custodians who moved with extreme caution, while inside bilateral room 5 the Minister of Economy and Marco Lavagna, Head of INDEC and Secretary for Relations, were Palais International des Finances.
After the usual greetings, and while waiting for mineral water and coffee for the four of them, Georgieva began the conclave with a tough questioning of the Minister of Economy. The managing director criticized Massa’s decision to buy back the debt with central bank reserves. The Minister replied that this move was intended to preserve economic stability. “I live in Argentina, not in Washington.”
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Then, and in the same tone, Georgieva complained about the permanence of energy subsidies for the highest income sectors. Massa listened in silence and then argued that the delay was due to technical issues that are unrelated to any political decision.
“I can’t explain to Washington that they continue to subsidize the rich”, replied the general manager.
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Massa understood the contentious point and undertook to resolve this dispute. This would happen before the end of the year.
At the end of the two rounds, Georgieva smiled and announced the good news. The managing director told Massa that IMF staff had verified that Argentina had met the targets set for the last quarter of 2022. This news implies that there will be a new disbursement from the Fund to bolster the Central Bank’s reserves.
During, a technical team from the Palacio de Hacienda is in DC to complete the drafting of the official statement with staff from the International Monetary Fund. Georgieva told the Minister of Economy that this statement announcing the achievement of the goals will be published in the coming days.
After analyzing the various instances that led to the approval of the objectives for the last quarter, Massa explained to Georgieva his strategy for managing his stability plan in an economic context marked by the war in Ukraine and the drought in Argentina. “It’s about parking the car, in the right place,” the minister told the chief executive.
Georgieva appreciated Massa’s expression.
When the meeting has averaged, Massa described the effects of the war in Ukraine and the drought on economic stability. The minister argued that the conflict sparked by Vladimir Putin caused an unexpected rise in global commodities – freight, energy and fertilizer – and that this sharp increase in costs affected the reserves of the Central Bank.
In this context, Massa added that the drought had affected the country’s harvests and led to a sharp drop in foreign exchange earnings. Georgieva understood the reasons of the Minister of Economy and It is already studying a technical palliative which could be applied from the first quarter of 2023.
At 1252, Bangalore time, meeting ended. Massa accompanied Georgieva to the door, kissed her and gave her a thumbs up. The general manager smiled and left accompanied by her two bodyguards. Gopinath, who is a rock star in the international establishment, was slow to take a series of selfies in front of a G20 India banner.
developing news