2024-01-08 21:10:00
The Minister of Economy Luis Caputo and the chief of staff Nicolas Posse They led a meeting with a mission from International Monetary Fund (IMF) in order to continue with the negotiations regarding the fallen agreement and with a view to unblocking the turn of USD 3.3 billion which was not disbursed last year.
Sources from the Treasury Palace assured PERFIL that “the meeting was positive“The technical teams will continue working in the coming days with the intention of issuing a joint statement with the conclusions of the visit.”
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As this media learned, the conclave took place in Casa Rosada, lasted almost three hours and participated Luis CubedduDeputy Director of the Western Hemisphere Department; Ashvin AhujaHead of the Mission; Ben Kelmansonrepresentative of the IMF in Argentina and Caputo and Posse representing the country.
Throughout last weekend, Economy and Central Bank officials held meetings with the technical team of the multilateral organization, which continues to closely monitor Argentina’s public accounts before sealing a new pact with the current government.
With the nod he received in mid-December, the Minister of Economy looking to access a “waiver” (sorry) for failure to meet established goals by the previous management and, simultaneously, establish new guidelines in the renegotiation of the Extended Facilities Agreement.
The Government seeks the help of the IMF to pay maturities and sustain the plan
The formal talks took place a few weeks after the Government obtained a bridge loan from the Development Bank of Latin America and the Caribbean (CAF) for USD 960 million to cancel the payment of USD 921 million to the Monetary Fund corresponding to December.
In this sense, the Argentina must pay about USD 1,950 million at the end of January, according to what is stipulated in the current schedule. The thing is that Javier Milei’s administration resorted to a mechanism known as “bundle” to unify the monthly due dates and pay them at once.
In order to honor the expiration, the National Treasury issued a non-transferable bill for USD 3.2 billion that will come from the BCRA’s international reserves. The remaining amount will be used to pay debt with private bondholders for USD 1.6 billion.
The IMF reviews Argentine accounts and focuses on reserves, adjustment and political and social impact
The IMF supported Caputo’s first measures
From the perspective of the Monetary Fund, the ruling party started off on the right foot: Julie Kozackthe director of Communications of the financial entity, praised the first measures announced by Caputo that included an exchange rate jump of 118%, the reduction of energy and transportation subsidies and the shrinking of the Stateamong other.
“These strong initial actions point to significantly improve public finances in a way that protects the most vulnerable in society and strengthens the exchange rate regime. Its decisive application will contribute to stabilizing the economy and laying the foundations for more sustainable growth led by the private sector,” Kozack judged.
At the same time, the IMF spokesperson stressed that “after the serious setbacks in economic policy in recent months, this new package of measures constitutes a good basis for continuing discussions aimed at redirecting the current program supported by the Fund.”
What is the payment schedule to the IMF in 2024?
According to the current scheme, which could be altered after the negotiations, this year the Argentina will have to disburse almost USD 7.5 billion, distributed as follows:
- US$1.95 billion in January
- US$810 million in February
- US$1,922 million in April
- US$743 million in May
- US$641 million in July
- US$727 million in August
- US$716 million in November
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