LatinNews Daily - 12 June 2024

*Argentina’s Economy Minister Luis Caputo has announced that the country will negotiate a new programme with the International Monetary Fund (IMF) following the eighth review of the current agreement. The IMF’s executive board is scheduled to announce whether it approves the findings of the review on 13 June. If approved, it would result in a disbursement of some US$800m. Approval of the IMF review is crucial for further disbursements needed to honour upcoming debt payments with creditors including the IMF, to which the country owes US$44bn. During a conference in Buenos Aires, Caputo stated that the upcoming negotiations aim to secure a new deal that will address Argentina’s economic challenges. The IMF has noted Argentina’s progress under President Javier Milei, including achieving the first quarterly fiscal surplus in sixteen years, reducing inflation, and significantly lowering sovereign risk. However, Caputo highlighted ongoing economic tensions, including exchange rate volatility and the need for fiscal equilibrium. Caputo also mentioned the upcoming legislative discussion on the the ‘Ley de Bases’, or omnibus bill of reforms, including financial and fiscal reforms, proposed by President Milei. Despite political challenges, Caputo expressed confidence in the economic recovery of the country. He emphasised the importance of fiscal and economic reforms, including the reduction of public works projects at the national level and the transfer of responsibilities to provincial governments. He reiterated the government’s commitment to stabilising the economy and improving the fiscal balance, predicting significant economic progress in the coming months.