The president of Argentina, Javier Milei. Photo: File photo.
The president of Argentina, Javier Milei, revealed that he is working on the formation of a credit pool totaling $15 billion to accelerate the process of elimination of exchange controls and currency competition.
“A new agreement with the IMF is being negotiated. If the conditions are satisfactory we could move forward,” Milei announced on Friday, March 15, in a radio interview. “What we have done in our administration put us in an unbeatable situation because we lowered 11 deficit points, of which five correspond to the Treasury and six to the BCRA.”
The Argentinian head of state admitted that negotiations with the International Monetary Fund (IMF) are underway, but added that, in order to reach the debt amount, contributions from other multilateral organizations, countries and “private investors” could be added.
He also claimed that the country is “going through the hardest month” and warned that this situation will extend “to the first days of April.”
Inflation in Blockaded Venezuela 10 Times Less Than in Milei’s Neoliberal Argentina
He highlighted the result of the interest rate reduction ordered by the Central Bank. “Days ago we lowered the interest rate. In another context that would have caused a brutal jump in the dollar, but that did not happen, we continue buying dollars,” he remarked.
Milei also talked about starting a dollarization process with the money provided by the IMF debt. However, the IMF itself has told the government, in private, that it does not want to endorse a dollarization of the Argentinian economy.
The Argentinian economy is going through a dire situation, and recorded 250% inflation in February. The Milei administration has failed to contain the runaway inflation, and a borrowing plan from the IMF may worsen the condition.
(Ăšltimas Noticias) with Orinoco Tribune content
Translation: Orinoco Tribune
OT/SC/DZ
