New Argentine economy chief commits to IMF program

The new Argentine economy chief agreed to support the objectives of the IMF program - IMF's Georgieva Person walks on the street in downtown Buenos Aires.

WASHINGTON Reuters -- Argentina's new economy chief, Silvina Batakis, told IMF officials she supports the objectives of a $44 billion International Monetary Fund program and will work constructively with the global lender, IMF Managing Director Kristalina Georgieva said on Wednesday.

Georgieva told Reuters that she would underscore the IMF's desire to continue supporting Argentina when she speaks with Batakis later Wednesday, following Batakis' swearing-in late Monday after the abrupt departure of her predecessor, Martin Guzman.

Batakis has already spoken with the head of the IMF's Western Hemisphere department and pledged to support the objectives of the IMF program, which Guzman negotiated to replace a failed 2018 loan.

The departure of Guzman has sparked concerns of a shift toward populist policies and state spending in Argentina, which is grappling with sky-high inflation, and raised concerns that the new government would try to change the terms of the IMF deal.

The world is changing very quickly, but she did commit to the objectives of the program and she did commit to work with the fund to achieve these objectives, Georgieva said.

She said that Argentina faces a very complex, very difficult time, and that the International Monetary Fund would do what it could to help Argentine authorities deal with surging inflation.

The minister understands the purpose of fiscal discipline and also understands that if you want to help the poor, it can't be in a state of galloping inflation, Georgieva said.

Batakis was asked if he would push for changes to the IMF program. Georgieva said that Guzman also had different views than the IMF on occasion and that it was important to reach consensus by exploring different options.

She said that we need to be clear that painful actions are sometimes necessary to reap the benefits of these actions.