The International Monetary Fund (IMF) announced a shift in its negotiations with Argentina, with Rodrigo Valdes, Director of the Western Hemisphere Department, stepping back from the talks. Valdes has fully delegated his responsibilities to other IMF officials, including Deputy Director Luis Cubeddu and mission chief Ashvin Ahuja, according to a statement from IMF spokesperson Julie Kozack during a press briefing on Thursday.
This move follows months of tension between Valdes and Argentina’s new right-wing administration led by President Javier Milei. Milei had previously criticized Valdes, prompting speculation about strained relations. Despite Kozack’s previous assurances in July that Valdes had the full backing of IMF management, Thursday’s announcement reflects a shift in the approach to Argentina’s ongoing negotiations with the Fund.
An Argentine government source welcomed the decision, reiterating criticism of Valdes’ perceived ideological differences. The source highlighted Valdes’ background as a former finance minister under Chile’s left-wing President Michelle Bachelet and suggested that he lacked understanding of Argentina’s economic program.
Valdes, who joined the IMF in May 2023, has an extensive background in economics, holding a Ph.D. from MIT and having worked in the private sector with Barclays Capital and BTG Pactual. The IMF did not comment further on the Argentine government’s statements.
With Cubeddu and Ahuja now leading negotiations, the focus remains on Argentina’s economic challenges and the continued engagement between the IMF and the Milei administration.
