Following Macri’s announcement Tuesday, several people protested against a new IMF intervention, still traumatized by the economic collapse at the start of the century, Reuters reported.
“The IMF has a terrible reputation among Argentinians, and so this is a big political gamble for the government,” Fiona Mackie, regional director for Latin America at the Economist Intelligence Unit, told CNBC via email.
“At present, though, (the government) clearly sees the need to regain the confidence of markets as more pressing, and is hoping that its program of adjustment gets back on track in time for the presidential election late next year,” she added.
Meanwhile, Christine Lagarde, managing director of the IMF, said in a statement Tuesday that Argentina is a “valued member” of the Fund. “Discussions have been initiated on how we can work together to strengthen the Argentine economy and these will be pursued in short order,” she said.
In its latest economic assessment of Argentina, the IMF said in December that the country was experiencing a “solid recovery.”
“Even in the face of planned fiscal consolidation and ongoing efforts at disinflation, growth is expected to consolidate in the coming years,” the IMF report said at the end of last year.
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