IMF Shuffles Argentina Negotiations After President Milei’s Criticism

The International Monetary Fund (IMF) has taken the unusual step of reassigning its top negotiator for Argentina, Rodrigo Valdes, amid growing tensions with President Javier Milei, Bloomberg reports.

Valdes, the IMF’s Western Hemisphere Director, has been removed from leading talks with Argentina and will be replaced by his deputy, Luis Cubeddu, and the Argentina mission chief, Ashvin Ahuja. The decision comes after Milei, who took office earlier this year, publicly criticized Valdes’ handling of the IMF’s $44 billion program with Argentina.

Last month, Milei blasted Valdes as “truly irresponsible” for allowing the previous government to accumulate a significant number of central bank put options. This move, he argued, had contributed to the country’s current economic instability.

The shift in negotiators marks a significant change from July, when IMF spokesperson Julie Kozack stated that Valdes had the full confidence of Managing Director Kristalina Georgieva.

While the IMF has not directly commented on the reasons behind the change, the move is widely seen as a response to Milei’s vocal displeasure with Valdes. The Argentine government is currently seeking fresh funding from the IMF through a potential new program.

This development adds another layer of complexity to the already challenging relationship between Argentina and the IMF. The two entities have a long history of contentious negotiations, with Argentina struggling to meet its financial obligations under previous IMF programs.