The last IMF official who had participated in the loan to Mauricio Macri’s government has resigned

The International Monetary Fund announced on Tuesday the resignation of Alejandro Werner, director of the agency’s Western Hemisphere department and one of the officials most involved in negotiating the loan to the Argentine government during the presidency of Mauricio Macri.

Thus, it adds to the outputs of Christine Lagarde as general manager, who has given way to Kristalina Georgieva, his second David Lipton in February 2020 and Roberto Cardarelli, who was moved from his post as head of the Argentine mission and who was replaced by Luis Cubeddu. Werner, in fact, had already been excluded from the discussion table with the current government and his place was occupied by his deputy director, Julie kozack.

“Alejandro has led the Department through very difficult times and leaves it on a solid footing to continue helping our member countries across the region,” Georgieva said according to an IMF statement. “I have deeply appreciated your experience, your good judgment and your advice, and thank you for your excellent service and support,” he said.

Werner, an economist of Argentine origin but who has lived most of his life in Mexico, has been Director of the Western Hemisphere since 2013 and will be leaving his post as of August 31, the agency said.

“The Alejandro’s in-depth knowledge of the region and his extensive experience in both the public and private sectors and in academia they have been invaluable, ”Georgieva continued. “Alejandro has played a fundamental role in preparing the Fund’s advice to regional authorities on issues such as tackling corruption, inequalities and promoting inclusion and sustainable growth, which has dramatically improved the region’s economic outlook. He also drew greater attention to the difficult situation of the most vulnerable countries in the region, including the threat of climate change, ”said the director general of the organization.

“More recently, as the world grapples with the Covid-19 pandemic, Alejandro led his department to help some of the hardest hit countries, many of which are tourism dependent economies, to secure more than $ 60 billion in emergency funding from the Fund, ”Georgieva concluded.

Werner, an economist of Argentinian origin but who has lived most of his life in Mexico, has been director of the western hemisphere since 2013 and will step down on August 31, the agency said.

Werner initially joined the Monetary Fund in 1995 through the Economist program. He left the Fund for other professional activities and returned to Mexico to work as Director of Economic Studies at Banco de México. Later he became Undersecretary of Finance and Public Credit of the Mexican Ministry of Finance and after more than a decade of public service he joined BBVA Bancomer de México as Director of Corporate Banking and investment.

Werner also held various academic positions in Mexico, Spain and the United States and was named Young Global Leader by the World Economic Forum in 2007.

The loan to Argentina and its displacement

The Director of the Western Hemisphere (department which is mainly in charge of the IMF’s relations with Latin America and the Caribbean) was one of the decisive officials during Argentina’s negotiations with the agency in 2018 to finalize the Stand By loan, which ended up being the largest in the history of the Monetary Fund for $ 57.1 billion.

With Lagarde and the head of the Staff technician Roberto Cardarelli, were the three visible faces of these months of coming and going between the start of negotiations in May 2018 and the announcement of the second agreement in September of the same year, three months after the failure of the first financial program.

Werner’s resignation comes on top of Christine Lagarde’s departures as Chief Executive Officer, who gave way to Kristalina Georgieva, her second David Lipton in February 2020 and Roberto Cardarelli, who was moved from her post as Head of Mission Argentina and that he was replaced by Luis Cubeddu.

In the following months, the tensions between the government of Mauricio Macri and the credit agency continued to make certain aspects of the program more flexible, in particular the power of the Central Bank to intervene in the foreign exchange market. In these exchanges, it was particularly relevant David Lipton, second behind Lagarde and one of the so-called “hawks” of the Fund for its harshness during the negotiations.

With the change of government in 2019 and the announcement of debt restructuring with the IMF, faces have changed on both sides of the table, both among Argentinian officials and IMF leaders. Kristalina Georgieva left her post at the World Bank to take on the general management, while Lagarde became president of the European Central Bank..

Roberto Cardarelli has been moved as head of mission and replaced by Luis Cubeddu. Cardarelli currently continues at the Monetary Fund as head of the technical team that negotiates with the Moroccan government.. More, Lipton stepped down in March 2020 and is currently working as a consultant in the United States Department of the Treasury..

Werner, although he retained his post throughout 2020, was less involved in the Argentina affair. Since the official resumption of negotiations with Argentina at the start of Alberto Fernández’s mandate, the official charged by Georgieva to continue relations with the Casa Rosada was the deputy director of the western hemisphere Julie Kozack.

A few weeks before the announcement of his departure, Alejandro Werner had raised the dust amid negotiations between the government and the IMF by noting that he had “Important differences of opinion within the political alliance” of the Frente de Todos, which could imply a delay in a resolution.

“We are working to be ready when the government wants to finish it and speed it up. I think we are able to do that, but it is true that the negotiations took longer than perhaps thought … be ready in the first half of this year, ”Werner said at an event hosted by S&P Global. From the Ministry of the Economy, at the time, they rejected his comments by making sure that they were statements “From an official who is no longer part of the negotiation“.

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