2023-08-30 22:09:51
Buenos Aires Correspondent
Argentina canceled early an expiration for USD 921 million which operated with the International Monetary Fund (IMF) in mid-September.
This was confirmed to this outlet by sources from the Central Bank of the Argentine Republic (BCRA) who indicated that in this way the “a saving in interest payments”.
For the payment SDRs were used that were received with the disbursement for U$S 7,500 million that was made last week.
In this way, US$ 3.7 billion of that amount has already been applied to cancel the bridge loans obtained with the Regional Development Bank (CAF), the yuan contributed by China and the SDRs offered by Qatar, and consequently the total refunded amounts to about $4.6 billion.
Although with this decision an important obligation was subtracted, during September the government still must face maturities for just over US$700 million with other multilateral organizations and bilateral credits.
The maturity schedule until the end of the year in foreign currency until the end of the year continues with the payment of US$ 3,068 million in October, US$ 1,033 in November and US$ 1,300 in December.
To deal with this scenario, a new IMF disbursement of some US$ 2.7 billion is expected in November in exchange for a new review of the current agreement.
The point is that this audit will be carried out in the middle of the electoral process, with the possibility that the current government fails to comply with the program, with which the responsibility of repairing the situation will remain in the hands of an administration that has just taken office or is about to take office.
Therefore, the schedule of revisions and approvals designed by the IMF seems curious how much less.
The text of the agreement announced last week by the body makes it clear that the Argentine government is obliged to take a series of measures, including, an adjustment in public salaries, a cut in pensions and an increase in public rates.
All these unpopular measures should be taken by the current Minister of Economy and candidate of the ruling party, Sergio Massa.
The uncertainty due to this confusing scenario is the main factor that puts pressure on the exchange rate and led the “blue” dollar to settle above $700. Even companies are determined to pay more than $800 for bills to deposit their holdings abroad.
1693433431
#Argentina #paid #advance #maturity #million #IMF #reasons