2024-04-08 02:35:00
The government decided to unify at the end of the month the payment of the US $1,940 million of corresponding maturities with the agreement of the International Monetary Fund (IMF) of April 2024as confirmed by sources from the Ministry of Economy to the agency Argentine News. Javier Milei’s administration decided to pay said amount on the last day of the fourth month of the year.
The payment will be given a few days after the Minister of Economy, Luis Caputo, travels to Washington to attend the spring meeting of the international organization, in order to achieve a new understanding. Although the expiration calendar had several instances, the government will access the right it has to postpone the transfers until the last day of April.
As it is a figure that represents a strong impact on Central Bank reserves of the Argentine Republic, Argentina adopts this measure. This resource was also implemented by the former Minister of Economy, Sergio Massa, during his administration.
The US$1.94 billion summarize the three payments planned for April and represent the first transfer of funds to the IMF since January of this year. This Tuesday, April 9, the government should pay about 1,292 million dollarsthat is, 975 million Special Drawing Rights (SDR). A week later, another 643.6 million dollars were stipulated (487.5 million SDR) and, at the end of the month, another 88 thousand dollars.
On the other hand, the government has another commitment ahead of it at the beginning of May: the 1st must pay another US $857 million. The maturities for the second quarter with the IMF total US $2,778 million.
The IMF appreciated Milei’s progress but sees it as “too premature to talk about a future program”
The International Monetary Fund welcomes the efforts that the government has been making to achieve “macroeconomic stability.” and lay the foundations for inclusive and sustainable growth in Argentina”, and continues to support and work with local authorities, the organization’s spokesperson said last Thursday, Julie Kozack. However, he also noted that “at this time it is too premature to start talking about modalities for a future program.”
Javier Milei’s government has already commented that it is interested in a new agreement. In fact, Caputo himself mentioned last month in front of the AmCham Summit that he is talking to the IMF to obtain US $15 billionand that the organization is open to a new program, although it also accepted that it is still premature to guarantee that the IMF will give more money.
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In her regular press conference, spokesperson Kozack explained that “The Argentine government is implementing an ambitious stabilization plan to restore macroeconomic stability”. In addition, he recalled that “the plan focuses on establishing a strong fiscal anchor that eliminates financing of the government by the Central Bank, along with policies that reduce inflation, restore reserves and address other impediments to growth that have persisted in the past”.
By virtue of this work that the Milei administration has been doing, the spokesperson celebrated the results achieved. “Of course the progress is incredible”he noted and then added: “The fact that inflation is falling faster than expected is, of course, a very positive thing to comment on.” “It is important to continue improving the quality of fiscal adjustment, while adapting to monetary policy during this transition period,” said Kozack and clarified: “At this time It is too early to start talking about modalities for a future program“.
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