Finance Minister Vicente Bengoa told reporters that the government was negotiating more flexible limits on some of the fiscal goals established by the IMF Letter of Intent. According to Bengoa, the IMF was mistaken in some of its estimates.
He cited inflation as one area in which the government has surpassed the IMF estimate, which was for inflation to hit 14%-15% this year. Current estimates place inflation closer to 10% for the year. With regard to the GDP, the IMF estimated an increase of just 2%, and, according to Bengoa, current indicators would seem to predict a GDP increase closer to 4%. Finally, the Finance Minister said that the most eloquent indication of recovery and the need to loosen some of the restraints on fiscal policy is the recovery of hard currency reserves. From a negative US$19 million left by the former administration, Bengoa cited a current gross reserve of US$1.4 billion.