Economic Diplomacy: Argentina’s Path to IMF and World Bank Meetings with Treasury Department

On Wednesday, Argentina’s Minister of Economy, Luis Caputo, will travel to Washington for the Spring Assembly of the International Monetary Fund (IMF) and the World Bank. Joining him on this trip is the Chief of Staff, Nicolas Posse, who will also have meetings with White House officials.

During their time in Washington, Caputo and his economic delegation will hold several meetings within the framework of the organization’s Assembly and the G20. While an official meeting with the IMF director has not yet been confirmed, it is expected that they will meet at the Pennsylvania Street building.

The focus of these meetings will be to finalize the eighth revision of Argentina’s program, which is expected to be completed in mid-May and would allow a disbursement of about US$770 million. The government is also optimistic about a new program that expands the loan to Argentina, with some US$15,000 million that would primarily be used to address financial challenges. However, discussions on this are still considered “premature.”

Economy officials are excited about not needing waivers or pardons in the review, something that hasn’t happened in decades. The government is confident that they have met the goals set by the program in terms of reserves and fiscal deficit in a “spectacular” way. They also celebrate the slowdown in inflation, with projections showing a decline to 15% by the end of the year and 4.5% by 2025.

Negotiations between technicians continue virtually or in person, with a focus on improving the quality of fiscal adjustment without disproportionately impacting vulnerable sectors. The role of Treasury is crucial for any negotiations or new programs with IMF as United States holds significant influence in decision-making as it’s main shareholder