Argentina economy chief: no talks underway over new IMF program
Adds comment from IMF official
BUENOS AIRES, Feb 29 (Reuters) -Argentina's Economy Minister Luis Caputo said on Thursday that there were no talks ongoing with the International Monetary Fund (IMF) over a new loan program, denying as "incorrect" a report saying that negotiations were underway.
"The Fund is open to exploring a new program, but we are not negotiating anything at the moment," Caputo wrote in a post on social media platform X, responding to an earlier report that cited a government source.
Argentina is the IMF's largest debtor, with a live $44 billion loan program that slid off track last year amid rising inflation and a deepening fiscal deficit. The two sides are already discussing how to revamp the current deal.
A new deal, however, would be a more significant step that would involve fresh funds to the embattled country that is grappling with inflation over 250%, net foreign currency reserves in the red, tight capital controls, and rising poverty.
An IMF official, asking not to be named, said the lender was focused on supporting Argentine government policies that help restore macroeconomic stability, adding it would be "premature" for the two sides to discuss details about any new program.
New libertarian President Javier Milei has pledged to turn around the country's economic crisis with tough austerity measures, which have gone down well with markets and investors but created tension with unions and regional governors.
Reporting by Adam Jourdan and Rodrigo Campos; Writing by Brendan O'Boyle; Editing by Valentine Hilaire and Marguerita Choy
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