Caputo says Argentina will seek new IMF programme to exit 'cepo'

Economy Minister Luis Caputo said Tuesday that Argentina intends to ask the International Monetary Fund for “new money” as part of a new credit programme.

Speaking at a seminar held at the Hilton Hotel in Buenos Aires, Caputo said President Javier Milei’s government will seek a new deal with the multilateral lender that will allow Argentina to remove strict currency controls. 

He said negotiations over a new programme would begin once the IMF’s executive board signs off on Argentina’s latest quarterly review, which has already been approved by IMF technical staff.

The IMF executive board’s “ evaluation will be on [Thursday] June 13 and based on that, we will negotiate with them a new programme,” Caputo announced during a forum on the “rebirth of freedom in Argentina” at the Hilton Hotel in Buenos Aires.

Caputo, speaking during a dialogue with Aldo Abram, the executive director of Fundación Libertad y Progreso, said a deal “will probably take a little time” and refused to provide further details, saying “first it has to be agreed with them.”

"It will take some time but it has to be agreed with the Fund and eventually, with this new programme, new money will arrive," the minister said. 

The minister did, however, add that the programme would be part of a plan to remove Argentina’s strict currency controls, which are colloquially known as the “cepo.”

Argentina currently has a US$44.5-billion credit programme with the IMF, which provides it with fresh funds to make existing repayments on the condition that the nation’s quarterly accounts meet with approval.

Caputo also highlighted the importance of Congress approving President Milei’s sweeping ‘Ley de Bases’ reform bill and its accompanying fiscal package. 

– TIMES/NA