IMF official steps back from Argentina talks in feud with Milei

The International Monetary Fund’s top negotiator with Argentina has delegated talks with the South American nation to colleagues after drawing the ire of President Javier Milei.

Western Hemisphere Director Rodrigo Valdés deferred to his deputy and another official “to best support the ongoing constructive engagement with the Argentine authorities,” IMF Chief Spokesperson Julie Kozack said Thursday at a press briefing.

Talks about the future of Argentina’s US$44-billion programme with the Fund will now be led by Luis Cubeddu, deputy director for the Western Hemisphere, and Ashvin Ahuja, the Argentina mission chief, Kozack said.

Milei, whose government is seeking fresh funding in an eventual new programme, has long had a fractious relationship with Valdés. Last month, the Argentine president called the IMF official “truly irresponsible” for allowing the previous government to build up a stock of Central Bank put options.

The move marks a change in the IMF’s stance in July, when Kozack said Valdés enjoyed the full confidence of Managing Director Kristalina Georgieva.