Caputo spoke with Kristalina Georgieva and guaranteed that Argentina will maintain the fiscal and monetary course agreed with the Fund, despite the setback in Buenos Aires Province
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The International Monetary Fund (IMF) confirmed that it supports Javier Milei's economic program following his party's defeat in the Buenos Aires elections.
The Minister of Economy, Luis Caputo, held a conversation with the organization's Managing Director, Kristalina Georgieva, to convey that the libertarian administration will continue with the agreed fiscal and monetary targets.
Caputo assured continuity of the program
Caputo explained to Georgieva that President Milei will not alter his economic agenda or yield on the commitments made with the IMF.
In line with this stance, the Government recently vetoed laws that sought to increase funding for national universities and Garrahan Hospital, which reinforced its profile of fiscal discipline.
IMF's support
During a press conference, the organization's spokesperson, Julie Kozack, highlighted:
The support for the authorities' adherence to the fiscal anchor and deregulation policy.
The celebration of the primary surpluses achieved through August, in line with the program's objectives.
The recognition of the monthly inflation rate dropping below 2% for four consecutive months.
The appreciation of the restrictive monetary policy as a tool to stabilize the economy.
El FMI ratificó su apoyo al plan económico de Milei tras la derrota electoral en PBA
Although she avoided referring to the electoral defeat against Kirchnerism, Kozack emphasized that the organization expects further progress in the coming months.
Challenges on the horizon
The IMF spokesperson indicated that they are closely watching the 2026 budget, which is key to consolidating medium-term fiscal reforms. However, Casa Rosada remains firm in governing without a budget approved by Congress, a political decision that Milei doesn't plan to reverse.
Another sensitive point for the Fund is the increase in interest rates implemented by the Government to contain the dollar. Kozack warned that the monetary and liquidity framework will need to continue adjusting to mitigate volatility and avoid negative effects on economic activity.
