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IMF chief backs regional director after Argentina tensions

Published 09/13/2024, 03:23 PM
Updated 09/13/2024, 03:55 PM
© Reuters. FILE PHOTO: Director of the International Monetary Fund (IMF) Western Hemisphere Department Rodrigo Valdes speaks during an interview with Reuters in Marrakech, Morocco, October 12, 2023. REUTERS/Susana Vera/File Photo

By Rodrigo Campos

(Reuters) -The head of the International Monetary Fund gave her support to regional director Rodrigo Valdes on Friday, a day after the IMF had announced he would step aside from negotiations with Argentina.

"I have complete confidence in Rodrigo Valdes to lead the work of IMF's Western Hemisphere Department," said IMF Managing Director Kristalina Georgieva in a statement.

"He is an outstanding economist, a dedicated international civil servant, and a wonderful colleague. I trust Rodrigo's judgment on all matters, including on deciding to delegate the Fund's program negotiations with Argentina to his deputy, Luis Cubeddu."

The IMF said on Thursday that Valdes would delegate Argentine talks to other officials, in an announcement that came after Argentina's president Javier Milei had criticized Valdes' work. Cubeddu and mission chief for Argentina Ashvin Ahuja were named as contacts with Argentine authorities.

© Reuters. FILE PHOTO: Director of the International Monetary Fund (IMF) Western Hemisphere Department Rodrigo Valdes speaks during an interview with Reuters in Marrakech, Morocco, October 12, 2023. REUTERS/Susana Vera/File Photo

Thursday's move was welcomed by Milei's right-wing administration, who have criticized Chilean economist Valdes as a leftist who did not understand their program.

Argentina is the largest debtor to the IMF and has indicated it will request a new program as the current $44 billion agreement ends later this year.

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