March 25, 2021

Washington, DC: An International Monetary Fund (IMF) team, led by Julie Kozack, Deputy Director of the Western Hemisphere Department, and Luis Cubeddu, mission chief for Argentina, held discussions with Argentina’s Economy Minister Martin Guzmán and his team this week on an economic plan that could be backed by a new IMF-supported program. Ms. Kozack and Mr. Cubeddu issued the following statement at the conclusion of the meetings:

“The Argentine authorities and the IMF team made progress in defining some key principles that could underpin an economic program to help address Argentina’s near- and medium-term challenges. There was a common understanding of the need for macroeconomic sustainability and for safeguarding the post-COVID recovery underway. There was agreement that inflation is a multifaceted phenomenon, and that reducing it requires both consistent macroeconomic policies and coordination efforts to help anchor inflation expectations.

“There was shared recognition of the importance of policies to boost value-added exports and productivity, which would support a further buildup in international reserves, make the economy better able to cope with external shocks, and support a more robust growth trajectory underpinned by increases in private investment. The Argentine authorities and the team also concurred that the ongoing development of the domestic capital market would be critical for Argentina to sustainably finance much-needed investment and strengthen its overall resilience.

“The IMF team and the Argentine authorities will continue working together with a view to deepening their understandings in these key areas.”