"The IMF plays its reputation in Argentina" | M …

Time is running out for the government and the IMF. The patience of the markets is at the limit and mistrust does not stop. These are some concepts of a hard article published today by the British Financial Times newspaper, one of the most influential spokespersons of the global financial institution. "The IMF plays its reputation in Argentina", is the title that bears the signatures of journalists Colby Smith and Benedict Mander.

The authors badyze with concern the serious local economic crisis and the deterioration of the image of Mauricio Macri, but first and foremost point out that a failure of the program agreed with the Monetary Fund could tarnish the figure of its CEO Christine Lagarde cause serious damage to the already defeated reliability of the credit agency.

"Some fear that the biggest rescue of the Fund will weaken and can not survive an electoral shock," warns the Financial Times, which was able to welcome the neoliberal policy of the Macri government. the results The IMF had never lent as much money to any country as Argentina has had the opportunity, recalls this vast publication. This commitment, he explains, exposes the agency itself and its authorities. "The country's currency crisis has been revived and bond yields have risen, threatening not only the IMF's program for Argentina, but also its reputation and that of its leader," he said.

The biggest danger that the Financial Times warns is a return of Cristina Fernandez for dissatisfaction with the government of Cambiemos, which the newspaper considers a risk for the interests of financial capital. "The IMF program could collapse if the populist opposition, led by former leftist President Cristina Fernández de Kirchner, wins the presidential election in October," he declared. "Lagarde risked", completes the FT.

"When the IMF completed its third review of the Argentine economy in early April, the CEO, Christine Lagarde, touted the fact that government policies related to the record $ 56 billion bailout" bore "Less than a month later, in the face of President Mauricio Macri's bleak political outlook, the country's currency crisis has been rekindled and bond yields have risen, threatening no only the Argentinean IMF program, but also its reputation and that of its leader. "If Cristina won the elections," it would be devastating for the IMF because of the strong support of Mr. Macri ", insists the note.

The paper quoted William Rhodes, a former Citi executive, as saying, "This is the most important individual program he has presented (the IMF), and his reputation is at stake." Even Claudio Loser, former senior manager of the Fund, worries about the reputation of the agency. "Lagarde really risked this program and fully supported it," said Loser, a former head of the IMF's Western Hemisphere Department in 2001. A failed program would result in a "loss of credibility" of the fund, did it? he adds. .

"The projects have already deviated considerably from their objectives." Macri was forced to return to the IMF to renew the agreement, just three months after the initial agreement was presented in May. announced that it would lend 7100 million euros extra dollars and would allow the country to receive more money in advance in exchange for a more severe austerity program, "the article says. "The agreement required that Argentina implement a balanced budget for 2019 and reduce its external deficit, in both cases the country has succeeded." The article highlights, as outstanding issues, the rise of inflation and poverty.

Journalists also pointed to the tumultuous relationship between Argentina and the IMF. "Few people forget the disastrous end of the IMF's latest program, which borrowed an additional $ 8 billion from the Fund, only two months before the country failed to meet its obligations. used to buy pesos for institutional investors who wanted to leave Argentina ". For this reason, it indicates that another failure in this opportunity would be a blow to the IMF.