International Monetary Fund (IMF) spokesperson Julie Kozack said there is “no specific timetable” for a new deal with Argentina in her routine Thursday press conference. She also backed Rodrigo Valdés, the Fund’s Director for the Western Hemisphere, after Milei accused him of belonging to the São Paulo Forum.
“Staff will engage in discussions on a potential new arrangement, as we would with any IMF member once the authorities formally request one. And at this stage, there’s no specific timetable for such discussions,” Kozack said, pointing out that the IMF viewed the approval of the Ley Bases and the fiscal package as positive steps for the country.
Her words seemingly contradicted Economy Minister Luis Caputo, who earlier on Thursday spoke about the economy and discussions with the Fund. “We are beginning to talk about a new agreement,” he said in an interview with Radio Mitre on Thursday morning, expressing confidence that talks would finalize “for sure” before the end of the year and bring “fresh funds” into the country
Caputo did not give more details about the expected amount, claiming conversations have not reached “that point” yet. However, later on Thursday, Presidential Spokesperson Manuel Adorni said it was his understanding that the government had not started “formal” conversations with the lender.
Exactly one month ago, Caputo said the government would start negotiating a new program with the IMF that would bring the funds Argentina needs to lift its international exchange restrictions.
Caputo also said that there is not a clear date for lifting the exchange restrictions, collectively known as the cepo (Spanish for “clamp”). However, he said that he would decrease the PAIS tax — charged in almost all U.S. dollar transactions — from 17.5% to 7% in September. The ministry he leads is the one that increased it in December.
“This will have a very clear impact on inflation,” he said. “The officia [dollar]l rate will remain the same, so this will generate a new step of inflationary decline because the PAIS tax is extremely harmful.”
On Thursday’s conference, Kozack also said that the lender’s Managing Director, Kristalina Georgieva, has “full confidence” in Valdés. Three weeks ago, Milei said that Valdés had turned a “blind eye” to the previous Central Bank’s usage of puts — a financial instrument that gives its holder the right to sell an asset back to its seller at a specified price on a specified date.
He said Valdés did this due to having links with the São Paulo Forum, a conference created in 1990 by the Brazilian Workers’ Party, often the target of the president’s criticism.