2024-02-29 00:28:00
The main figures of the Javier Milei’s economic team met this afternoon with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgievain Sao Paulo, Brazil, where the meeting of ministers of Economy, Finance and president of central banks of the G20. There, they presented the progress of the economy, the numbers of the fiscal result and the accumulation of dollars.
“Very good meeting with Kristalina Georgieva and teams at the G20. Celebrate and support the measures and the results obtained by this new administration. The teams will continue working on the best strategy to continue supporting the country’s efforts,” he wrote on the social network. X (ex Twitter) the Minister of Economy, Luis Caputowho was accompanied by the president and vice president of the Central Bank (BCRA), James Bausili and Vladimir Werning, respectively; and by the Secretary of Finance, Pablo Quirno.
Meanwhile, Georgieva published: “Excellent meeting with Luis Caputo. I welcomed the sustained efforts of the authorities to restore stability, support the most vulnerable and build support for reforms“.
The meeting took place a week after the mission to Buenos Aires undertaken by the deputy director of the Fund, Gita Gopinath, and in the midst of a strong fiscal and monetary adjustment. The Government’s intention is to continue showing a surplus in the public accounts, both fiscally and commercially and in the current account, which is the driving force behind a sustained drop in inflation, as the opposite of the fall in economic activity.
Furthermore, another central point of the agreement with the organization is the constant accumulation of dollars in the BCRA reserves, which will serve as a basis for eliminating the exchange rate in the middle of the year, and the end of monetary issue as a form of financing for the Treasury.
However, the political directors of the Fund place special focus on ensuring that the economic adjustment program is politically and socially sustainable, without neglecting the poorest and working families.
According to the Open Budget data updated until February 26, revenue collection for the National Public Sector (SPN) has accumulated about $9.74 billion so far in 2024 and accrued spending has accumulated about $8.26 billion. while on a cash basis, payments reach $4.96 billion.
This would mean an accumulated financial surplus of $4.8 trillion or 0.7% of the Gross Domestic Product (GDP) to date. But technical specialists warn that a good part of the spending is executed in the last days of each month, such as salaries and social security, so that number is far from being the final one for February.
Meanwhile, the BCRA has purchased more than $8.6 billion in the Single and Free Exchange Market (MULC) since the December devaluation and in 2024 it did not transfer money to the Treasury, which did not need it either because it refinanced debt maturities and has a surplus. .
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