New IMF mission arrives in the country to review public accounts | Chronic

A new mission from the International Monetary Fund (IMF) will arrive next Wednesday in Buenos Aires to begin the fourth revision of the budget accounts, as part of the credit of $ 53,700 million that the agency gave to the national government.

The head of the Argentinean affair will lead the mission, Roberto Cardarelli, who will be accompanied by IMF technicians, who will meet with the authorities of the Central Bank and the Ministry of Finance in the coming days.

The meeting took place after the IMF eased its rules and allowed the government to intervene directly in the foreign exchange market, without waiting for the dollar to fall below the lower limit or exceed the maximum exchange rate set in March. October.

The budget results for April will be examined, as the Treasury has already reached the fiscal target with a primary surplus of 10 347 million euros, or 0.1% of GDP, as has been the case. indicated the holder of the portfolio. Nicolás Dujovne, at a press conference.

During his last visit, less than a month ago, the technical mission had approved a review of the progress made by the economy which had enabled the disbursement of $ 10 870 million under the of the agreed financial program.

Among the praises, the report included support for "Government plans to hold transparent daily currency auctions" and increases in social spending, although it required more adjustment to reach a zero primary deficit in 2019.

By the end of April, however, David Lipton, the first Deputy Managing Director of the IMF, said that "Argentina is facing a difficult situation in the financial markets" after which he accepted "the recalibration of the intervention policies announced by the Central Bank of the Argentine Republic", which turned out to be an endorsement of the sale of its currencies to contain the escalation of the American currency.

The new strategy of flexible interventions during the election campaign and goodbyes to the flotation band brought a respite and exchange rate for a few days. However, the resurgence of the trade war between China and the United States has changed world markets and punished the Argentine peso.

In addition, badysts have already warned that it was a double-edged sword since, even though it left more freedom for the central bank to deal with the dollarization of portfolios, the financing of capital flight with the entity's reserves would undermine the resources provided. for the payment of debt maturities in 2020, which could also have an impact on country risk.