Good negotiations between Argentina and the IMF – but “the dialogue will continue” – MercoPress
Good negotiations between Argentina and the IMF – but “the dialogue will continue”
Argentine Economy Minister Martín Guzmán and International Monetary Fund (IMF) Managing Director Kristalina Georgieva met in Washington on Tuesday to discuss renegotiating alternatives to the US $ 57 billion loans negotiated by the President’s administration. the time, Mauricio Macri.
Georgieva described the meeting as “very good”. She added that our teams are working together constructively to help strengthen economic stability, protect vulnerable people and promote sustainable growth. Our close dialogue will continue. ??
During the meeting, which took place in the afternoon at the headquarters of the credit agency in Washington DC and lasted about two hours, the two parties analyzed a possible extension of deadlines for the most disbursements. pending that Argentina is supposed to make as well as additional subsidies on the IMF portion, including special cash withdrawal allowances that would pay 3,500 US dollars to the Argentine Central Bank.
Georgieva pledged to submit to the Fund’s board in June a proposal to increase the IMF’s capital by $ 650,000 million in Special Drawing Rights (SDRs), which is a virtual currency of the IMF. on the basis of a basket of currencies. The issue has been debated since last January and already has the backing of the G20 and G7.
Guzmán for his part posted on Twitter: ?? Very productive meeting with IMF Managing Director @Kgeorgiava where support for the economic principles on which our government’s plans are based was deepened. ?? He continued: “We are working to finish turning the page occupied by the unsustainable debt and failed policies of the 2015-2019 period, by creating conditions that strengthen economic recovery and ensure lasting stability.” He reportedly showed Georgieva the budget results for the first two months of 2021, with the lowest financial deficit in six years, due to falling debt payments.
Minister Guzmán, Argentine Ambassador to the United States Jorge Argüello and other lower-ranking officials met with an IMF negotiating team at the Argentinian embassy on Friday morning, made up of IMF deputy director Julie Kozack. for the region, and Luis Cubeddu, in charge of the Argentinian case.
Many market analysts believe that given the pandemic and the fiscal situation of many countries, especially the poorest, the IMF should accelerate this extraordinary allocation of resources. According to Georgieva’s statement, the SDR issue will be subject to the ups and downs of political pressure among the most powerful countries in the Council. In other words, these funds may not be available until July or maybe well after that date.
Despite the delay, Argentina, which owns 0.65% of the IMF’s capital, would receive $ 4.3 billion, but not quite on time for payments due in May to several creditors, including the Paris Club and private lenders under national or foreign law. legislation.