Love is in the air? Honeymoon to continue...
Things seems to be moving fast in Argentina, with Milei announcing he would call an extraordinary parliament session to pass a series of fiscal reform the second day he will be in office on the 11th of December, and funding talks already (unofficially) kicking off between Milei and US teams this week.
Milei announced that measures will amount to a (unlikely ?!) 15 points of GDP adjustment, already re-sized down to 5% by his possible future minister of economy Caputo (ex-minister of finance under Macri), but still an impressive and challenging adjustment.
Milei has lost no time and he has already travelled to the U.S., as Argentina’s de facto major lender to present the plan to the IMF, US treasury and the White House.
IMF already said reassuringly that they are willing to support Argentina with the Resilience and Sustainability Trust (RST), which provides for 20 years loans with 10.5 years grace periods. We can not stop thinking that many inside the IMF and US administrations (present and future) are intellectually totally infatuated with Milei’s ideas and proposed approaches. For many economists and professional practitioners, Milei represents the very incarnation of the macro economic theories and related prescriptions they have dedicated themselves and in which have placed their belief.
Love seems very much in the air…
IMF keen to support Argentina, possibly through resilience trust
All eyes will be on Congress and execution after 10th of December, but a few things are potentially moving in the right direction.
Some color on Ocampo resignaiton and Caputo's "90-100 days" plan
Please read more on our views on Argentina, and more broadly on credit markets and a selection of bonds:
Argentina: Is Milei a macro-madman or the macro-hitman to get the dirty job done?