IMF Managing Director’s Remarks on Argentina

By Andrea Shalal and David Lawder

WASHINGTON (Reuters) – The International Monetary Fund’s managing director Kristalina Georgieva stated on Thursday that Argentina should not “derail the will for change” in the upcoming midterm elections, marking a rare comment on local politics from the global lender.

Georgieva noted that Argentina has been decisive in steering its economy toward stability by addressing double-digit inflation and large deficits. This commitment led to a new $20 billion program with the IMF this month, with $12 billion already disbursed.

She told reporters that while Argentina faces external global risks, it is essential to maintain its current course during the domestic elections later this year.

“Domestically, the country is going to go to elections, as you know, in October, and it’s very important that they don’t derail the will for change,” she stated.

Georgieva emphasized that currently, she does not see any significant risk of this happening but urged Argentina to stay the course.

The IMF clarified that Georgieva’s remarks were about economic challenges and opportunities rather than the election outcome. A spokesperson noted, “The managing director was underscoring the importance of policy continuity to support Argentina’s recovery.”

The October legislative elections are a crucial test for President Javier Milei’s policies. A previous $57 billion IMF program from 2018 failed to boost the Argentine economy and was derailed in 2019 when then President Mauricio Macri lost a primary election, leading to a market selloff.

The Argentine government did not respond to a request for comment on Georgieva’s remarks.