BUENOS AIRES, June 22: The IMF wrapped up a visit to Argentina on Friday under a cloud, with the Central Bank chief poised to quit and no sign of fully-fledged aid talks on the horizon.

The impending exit of Central Bank head Mario Blejer — an ex-IMF official who is at daggers drawn with the government over monetary policy — is another body blow to the floundering government, as fears of Argentine contagion and debt woes in neighbouring Brazil rippled through Latin American currencies.

The government played up the visit by the International Monetary Fund, which arrived last week to crunch numbers and lay the groundwork for possible talks to restart frozen aid.

But there were no statements from the IMF that typically follow progress in talks to announce a move to a next stage — which Argentina hopes will be a fully-fledged negotiating mission. It remained unclear whether the Washington-based lender was satisfied with Argentina’s promises and policies.

“I think it (the IMF) is still going to find that Argentina is far away from being ready,” said Freddy Thomsen, economist at ING Barings in Buenos Aires.

Caretaker President Eduardo Duhalde, drafted in after an elected government was toppled amid bloody riots in December, is forging ahead with a plan to offer bank depositors bonds in lieu of their savings.

CENTRAL BANK CHIEF TO RESIGN: The president of Argentina’s Central Bank, Mario Blejer, will resign his job at the end of the month, government sources said on Friday, as Economy Minister Roberto Lavagna announced he will travel to Washington for talks with the IMF.

Blejer, a 21-year International Monetary Fund veteran who has been in place at the central bank since January, disagrees with policies carried out by Lavagna, according to the source.

During Blejer’s tenure the Central Bank’s reserves dropped to less than $10 billion.

“Blejer will hand in his resignation on June 30,” after he returns from a trip to the United States and Croatia, a government source said Friday.

Blejer is likely to be replaced by his top assistant, Aldo Pignanelli, a Lavagna loyalist.

Earlier reports had Blejer resigning before the end of the day.

The Argentine MerVal stock indicator dropped 2.39 per cent Friday to 313.11 points, while the Argentine peso dropped 1.4 per cent, closing at 3.63 against the US dollar in bank transactions.

Meanwhile, Lavagna announced that he will travel on Tuesday to Washington, where he will meet with IMF officials in yet another plea for assistance.

He will be joined by Finance Secretary Guillermo Nielsen, the source said.

Ahead of the meeting, cabinet chief Alfredo Atanasof raised the fear of regional contagion as a way to get the IMF to soften its strict requirements.—AFP

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