Agreement with the Fund: a crucial appointment before Christmas

Agreement with the Fund: a crucial appointment before Christmas

The government seeks to approve the last disbursement of the year with the IMF

The last days of the year will be crucial for the agreement of the International Monetary Fund (IMF) with the Government, which will send a mission to Washington before the end of the month. The objective will be to finalize the negotiations for a new disbursement of US$ 5.8 billion in December and to renegotiate the goals for the (electoral) year 2023.

This was confirmed by official sources, who were satisfied with the result of the talks with the IMF both in Buenos Aires and in Bali, in the week that the G20 president’s summit was in session in the Indonesian capital, which coincided with the technical visit of the Fund to Argentina, within the framework of the third revision of the program for US$ 45,000 million.

The Argentine team that will travel to Washington at the end of the month will seek to close the negotiations of the third review with the IMF and “discuss the prospects of the program for 2023,” they confirmed from the Ministry of Economy.

In this sense, at the Palacio de Hacienda they highlighted the last meeting of President Alberto Fernández with the head of the Fund, Kristalina Georgieva, where they left “already open the discussion regarding the cost of the war” between Russia and Ukraine, which, according to the calculations of the Argentina, would have represented some US$ 5,000 million for the country.

“The discussion of the cost of the war began a month and a half ago in the development committee of the IMF. The impact of the war in the northern hemisphere began to be raised, and what we said is that the southern hemisphere has already paid for the war due to the increase in the price of fuel, fertilizers and grains. They are registered in public accounts. That represents between 3,600 and 5,000 million dollars for Argentina”, the Minister of Economy, Sergio Massa, expanded on this, and added: “From the close of the fourth quarter review, it will be necessary to discuss what it means for the IMF to absorb this responsibility” to assist low- and middle-income countries, including Argentina.

Meanwhile, in La Rosada they added that Fernández took Georgieva’s promise that “the surcharges will be discussed in December because Argentina is paying the Fund twice the interest rate than, for example, the IDB, and that is absurd when the The lender of last resort is the IMF.

In this way, the Government estimates that annual surcharges must be paid for a total of US$ 1,000 million, due to the magnitude of the program that the country maintains with the organization.

As stated, last Friday the IMF technical review ended in Buenos Aires and, as anticipated, the talks will continue virtually until the arrival of Argentine officials in the United States at the end of the month. If everything goes smoothly, Argentina would receive a disbursement of US$ 5.8 billion, which will basically be used to pay the bulk of the maturities scheduled with the Fund for before Christmas.

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