By Andrea Shalal and David Lawder
WASHINGTON (Reuters) -The International Monetary Fund’s managing director Kristalina Georgieva said on Thursday that Argentina should not “derail the will for change” in the upcoming midterm elections, in a rare comment on local politics from the global lender.
Georgieva said Argentina has demonstrated decisiveness in putting its economy on a sound track, tackling double-digit inflation and large deficits.
The current administration’s economic policies earned Argentina a new $20 billion program with the IMF this month, of which $12 billion has already been disbursed.
Georgieva told reporters that Argentina faced risks from the external global environment but also needed to maintain its course when it holds 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 said.
“So far, we don’t see that.
We don’t see that risk materializing. But I would urge Argentina stay the course.”
The IMF said Georgieva spoke of the economic challenges and opportunities, not the outcome of the October election.
“The managing director was underscoring the importance of policy continuity to support Argentina’s recovery,” said the Fund through a spokesperson.
“Her comments reflect the economic opportunity ahead – not any view on the political process or its outcomes, which the Fund does not take a position on.”
The October legislative elections are seen as a key test of President Javier Milei’s policies.
A $57 billion IMF program from 2018 failed to lift the Argentine economy and got derailed in 2019, when then President Mauricio Macri lost a primary election, triggering a market selloff.
The Argentine government did not respond to a request for comment on Georgieva’s remarks.
(Reporting by David Lawder and Andrea Shalal in Washington; Additional reporting by Eliana Raszewski in Buenos Aires; Writing by Rodrigo Campos; Editing by Chizu Nomiyama, Hugh Lawson and Tom Hogue)
