IMF’s Georgieva, Milei discuss economic challenges in video call

International Monetary Fund Managing Director Kristalina Georgieva and Argentina's President-elect Javier Milei held their first call Friday night to discuss the country’s economy amid triple-digit inflation and a plummeting currency.

“We discussed the significant challenges for Argentina’s economy and the decisive policy actions needed,” Georgieva said in a post on X, the platform formerly known as Twitter.

The IMF, she added, will support efforts to reduce the country’s inflation, currently over 140 percent, improve its public finances and “raise private-sector-led growth.”

"Today I had an excellent conversation with the director of the IMF, @KGeorgieva, in which we talked about the great economic challenge facing our country," Milei said on X. "I told her about different aspects of our fiscal adjustment plan and our monetary programme. The Fund was collaborative in finding the structural solutions that Argentina needs."

Argentina avoided falling into arrears with the IMF after paying US$2.6 billion in October on its US$43-billion programme, the lender’s largest. More than 40 percent of the population lives in poverty.

Milei, also writing on X about the call, said the IMF is willing to help find the structural solutions Argentina needs. The libertarian economist said he and Georgieva spoke about his fiscal adjustment plan and monetary programme.

The 53-year-old economist promised during the campaign to drastically cut public spending as part of a programme that includes eliminating the Central Bank and dollarising the nation's economy.

He later toned down some of his rhetoric, leaving uncertainty over his actual plans.

Argentina has had a US$44-billion credit programme with the IMF since the government of ex-president Mauricio Macri requested financial assistance in 2018.

The outgoing administration of Alberto Fernández renegotiated the loan, but the recession that accompanied the Covid-19 pandemic and a severe drought this year made it difficult for Argentina to meet the targets agreed with the IMF.