Strong support from the US Treasury for Miley's program in a meeting between Caputo and Yellen at the G20

From Sao Paulo, Brazil – Minister of Economy Louis Caputo He met this Thursday with the US Secretary of the Treasury Janet Yellen Within the framework of the G20 Finance Ministers and Central Bank Governors Summit in Sao Paulo. The White House official supported the government's economic plan Javier Miley It requested, in line with the International Monetary Fund, that fiscal adjustment provide protection “To the most vulnerable groups”which is what I consider “vital importance”. For his part, Caputo stressed that he believes that the liberal government's economic plan will be “a turning point in the history of Argentina” but that the economy will have to go through “difficult times in a short period.”

The head of the Treasury Palace made some initial comments, before the meeting was held behind closed doors, and noted that “the president did not lie” during the presidential campaign, and that he “said what would happen” if he was elected. “The people understood that and voted for it,” Caputo told Leylin and the officials who accompanied her. The minister said that, for this reason, the government will move forward with reforms despite the initial impact of the economic plan.

“I inherited the management of Miley A Difficult stabilization taskBut it has already taken some important steps to restore financial sustainability, adjust the exchange rate and combat inflation. I congratulate Secretary Caputo on his leadership during this period. There is no doubt that this has been and will continue to be a difficult period of economic transition for the Argentine people. “Protecting the most vulnerable during this transition period will be challenging, but vitally important,” Yellen said in a statement after the meeting.

“I see many areas of cooperation between the United States and Argentina on the issues being discussed on this year’s G20 finance agenda, and I look forward to discussing them today with Secretary Caputo. I look forward to an active and constructive relationship between the US Treasury and the US Department of the Treasury.

This is the first meeting between the head of the Treasury Palace and a prominent official in the White House, within the framework of a relationship with the International Monetary Fund that could migrate, in the coming weeks, in the direction of a different program. The support the economic team can get from Yellen is crucial as the Treasury Department translates its positions on fiscal support to a member state on the IMF's board. The United States is the only country with veto power over the resolution Councils.

The meeting began minutes after 2pm in one of the main bilateral meeting rooms on the first floor of the São Paulo Biennale. Caputo arrived a few minutes early, accompanied by the Minister of Finance Pablo Cerno. Yellin arrived accompanied Jay Shambhu And William Howlett, two senior advisors to the US Treasury Department. The meeting began even though two empty chairs were still waiting for the head of the Central Bank Santiago Boselli And vice Vladimir Verning.

The meeting with the No. 1 of the North American Treasury was the last in a series of meetings with top economic authorities from various countries, including Christian LindnerGerman Finance Minister, Bruno Lemire (France), Carlos's body (Spain) and Giancarlo Giorgetti (Italy). The government needs to start mobilizing support from the international community because if technical negotiations with the IMF on a new programme, something that could begin in the coming weeks, are blocked, political support could end up paving the way for an understanding.