Dujovne warned in US UU that the financial environment "remains unstable"

WASHINGTON.- The Minister of Finance,

Nicolás Dujovne

warned that, despite the progress of the economic plan, "the financial environment remains unstable", mainly because of the strong monthly inflation of the first months of the year, which will begin both with the estimates of the Government and the Fund. fall in the second half, albeit in a "progressive" way.

Dujovne today met with the Fund's number two, David Lipton, with whom he badessed the progress of the Argentine program, as part of a fledgling discussion on the effectiveness of monetary policy to contain price increases and restrictions imposed on the Central Bank in accordance with the

MFIs

to intervene on the dollar.

"The reformulated economic program is producing positive results," said Dujovne in a written statement to the IMF's International Monetary and Financial Committee, published the night before the meeting with Lipton.

Dujovne pointed out that the country risk has been moderate this year – although it has risen in recent days – the national government's debt renewals have been higher, the stock market has rebounded and the banking sector is "healthy" and has achieved the objectives of the plan with the Fund.

"Despite these achievements, the financial environment remains unstable, especially after monthly inflation, driven by inertia, some recovery in production margins, further standardization of public service tariffs and rising food prices, rose in January and February, although it remained below the high monthly rates of the second half of last year, "said Dujovne in a 13-page document, that he submitted on behalf of, Paraguay, Peru and Uruguay.

IMF spokesmen said Lipton and Dujovne had "exchanged views" on the progress of the economic plan. Lipton reiterated its support for the measures taken by the government to achieve the goals of the plan and the "strong commitment of the authorities to better protect the most vulnerable by expanding and improving the social network of Argentina". Neither government spokesmen nor the Fund's communiqué confirmed whether any changes to the monetary band regime had been discussed. Both in Washington and in Buenos Aires, note that the dialogue between authorities and agency staff is fluid and ongoing.

Dujovne also had a calendar of bilateral meetings in Washington with Saudi Arabia, Brazil and Luxembourg. With the Minister of Finance of Luxembourg, Pierre Gramegna, signed an agreement to avoid double taxation.

Depending on the sources of funding, the agreement contains clauses relating to income and wealth taxes and the prevention of tax evasion and tax evasion. Financial sources said the signing of the agreement, which follows the OECD model, represents a "milestone" in bilateral relations.

Mr. Dujovne also met the Brazilian Minister of the Economy, Paulo Guedes, with whom he badyzed the negotiations between Mercosur and the European Union with a view to concluding a free trade agreement. exchange.