LatinNews Daily - 20 December 2024

*The International Monetary Fund (IMF)’s chief spokesperson, Julie Kozack, has confirmed that Argentina’s government led by President Javier Milei is seeking a new programme to replace the current US$44bn Extended Fund Facility (EFF) arrangement it has with the Fund. In a press conference, Kozack said that Argentine authorities had “formally expressed” their interest in moving to a new programme and “negotiations are now underway”. She noted that the current EFF, which was negotiated under former president Alberto Fernández (2019-2023), is set to expire at the end of this year and that it was not uncommon for authorities to let an existing agreement expire without completing all the reviews while they considered moving to new Fund-supported programmes. At the press conference, Kozack said that Milei’s govt had continued to implement its economic stabilisation plan which had “achieved impressive results”, citing a “sizeable” reduction in inflation, fiscal surpluses, and improved international reserve coverage, while stating that a recovery in activity and real wages was now “firmly underway” with growth turning positive in the third quarter of 2024. Kozack added that the IMF’s team continued to engage “constructively” with the Argentine authorities to address the remaining challenges. She stated that the IMF would provide details and information on the process for moving to a new programme in due course.