Liliana Franco 
The IMF board has decided to remove Western Hemisphere Director Rodrigo Valdés from its negotiations with Argentina. Valdés was accused by President Javier Milei of not wanting “the best for Argentina.” He will be replaced by Luis Cubeddu and Ashvin Ahuja.
“To best support the constructive engagement with Argentine authorities, Rodrigo Valdés, Director of the Western Hemisphere Department, has fully delegated the program negotiations to Luis Cubeddu, Deputy Director of the Western Hemisphere Department, and Ashvin Ahuja, Head of the Mission to Argentina, whose work is being overseen by Fund authorities,” announced IMF communications director Julie Kozack during a press conference in Washington on Thursday.
Thus, President Javier Milei’s harsh criticisms of Valdés had repercussions within the multilateral organization. Milei has previously accused him of having “malintent towards Argentina.”
In radio statements in late July, the president stated: “I am convinced that this person [Valdés] does not want the best for Argentina,” and accused him of following a political agenda contrary to that of the libertarian leader. Milei said Valdés “was absolutely accommodating” to the government of Alberto Fernández and, in contrast, “every day is putting obstacles” to his administration, which is “an example of fiscal effort never before seen in human history.”
Despite Milei’s criticisms, Valdés was initially supported by the Fund’s board, as well as of Managing Director Kristalina Georgieva.
However, the IMF could not ignore the president’s serious accusations and, in a striking decision, opted to remove the top official responsible for dealings with Argentina, the Fund’s largest debtor. Valdés will now oversee the entire Americas region — except for Argentina.
Pension reform veto
Another significant gesture of support from the IMF was its backing of the government’s pension policy. Milei vetoed a proposal to increase pensions payments, and an opposition bid to overturn his decision in Congress failed on Wednesday. Kozack noted: “We have taken note of the recent developments in Congress and continue to emphasize the importance of achieving fiscal goals to support a reduction in inflation and improve overall political credibility.”
She continued, “In this context, we agree with the government’s objectives to strengthen the overall sustainability of the pension system while protecting the real value of the pension system, especially for retirees with lower incomes.”
YPF lawsuit
Asked about the YPF lawsuit taking place in the U.S., Kozack declined to comment, stating that the Fund “does not comment on legal disputes involving our member countries.”
Recovery of the Argentine economy
In response to a question from the Herald’s sister title, Ámbito, she said: “Since the successful conclusion of the eighth review of the Extended Fund Facility, Argentine authorities have continued to implement the program. Data up to mid-2024 suggests that fiscal and reserve targets have been met, and authorities are continuing to address long-standing imbalances facing the country.”
She highlighted that “the implementation of the program has resulted in a considerable reduction in inflation and there are signs of a nascent recovery in economic activity and real wages.”
Regarding the start of discussions for a new program, Kozack did not provide specifics. “IMF staff are working closely with Argentine authorities,” she said. “Technical discussions are taking place in the context of the current Extended Fund Facility program, and more information will be provided when available.”
