Sergio Chodos: “It would be opportune to conclude an agreement with the Fund before its expiry with the Paris Club at the end of May”

he Director at the International Monetary Fund (IMF) for Argentina and the Southern Cone, Sergio Chodos, today recommended not to rush into negotiations with the organization, because “we must work on an agreement that reflects the will” of the country.

“We must not rush, we do not see the urgency. The convenience would be to conclude the agreement with the Fund before the expiry with the Paris Club, at the end of May.. It does not imply that we have to hurry, the important thing is to do this process well, ”Chodos said in statements to the Commission. AM 750.

The IMF official said that “the dialogue has stopped a bit during the holidays, but the exchange with the IMF is continuous. Next week we will start with more intensity the exchange between the economy and different domains, such as central bank, to increase the exchange of information and analysis “.

Regarding the content of the multi-year plan that Argentina will present to the agency, to renegotiate the debt, Chodos indicated that “ it will be defined by Argentina and then these elements will be incorporated into the program, and not the other way around . We have to work on the recovery this year, but also think about the basics so that this recovery continues over time“.

In this sense, Chodos argued that it is necessary “to create a path that will lead us out of our relationship with the Fund in the medium and long term. We don’t want an extra $ 45,000 million to fund a capital flight that allows us to maintain a dollar when we are strapped for resources. We want to get out of this pattern in a way that doesn’t affect recovery. “

Then he explained that “the extended installations program involves more time than a stand-by, as was the case in 2018. It will be a longer program than the current one, it can last 7, 10 years”.

Retirement mobility and economic recovery

Chodos ruled out that the IMF is under pressure to sanction the change of retiree mobility law.

“The IMF is in no way behind the changes in the new mobility of retirees The mobility law is not requested by the IMF and is not part of a specification. Changing the formula is a sovereign decision for Argentina, ”he said.

The official justified the decision by stating that “It is one thing to have a rational projection of the use of resources and another, the adjustment processes.. We are not going to cut pensions by 13% as was the case in 2001. The adjustment is what was done in 2001, what was attempted during the Dujovne period and we know how it is. ‘is finished. “

Later, Chodos explained that “there is a comprehensive understanding of the need to use fiscal spaces where they exist and maximize the use of resources for health infrastructure and cover economic activity. Programs such as ATP and IFE have been highly regarded as well as by other places and countries. “

Referring to the economy throughout 2021, the official estimated that “there will be a significant recovery in 2021, there are all the variables given. But you have to think about the Argentine economy in the medium and long term. One of the usual themes in Argentina is the constant focus on the short term. There must be a medium and long-term reflection to lay the foundations for development. The multi-year program offers a longer time horizon and we are working on it “.

Finally, Chodos remarked that “the debt agreement with the bondholders was very important because it freed us from financial tensions and especially from the balance of payments. This allows us to have a horizon of greater peace and from there , investments in critical sectors, such as infrastructure and housing, will provide an important base and a restoration of the activity and consumption capacity of the population “.