The genesis will be next Monday, when the project begins to be discussed by the Budget Committee of the Chamber of Deputies. The Minister of Economy, Martín Guzmán, will be present there, who will provide details on the fine print of the text, one of the most difficult points within the Front of All (FdT), which still does not know if it will have the affirmative vote of all its legislators. For their part, the hard sectors of macrismo flirt with mystery and have not yet established a position on the matter.
In the statement released by the Government, it was reported that the agreement “is based on what is known as the IMF Extended Service (Extended Facilities Agreement; EFF, for its acronym in English), which includes ten reviews that will be carried out quarterly for two and a half years. The first disbursement will be made after the approval of the program by the IMF board. The rest of the disbursements will be made after each review is completed. The repayment period for each disbursement is ten years, with a grace period of 4 and a half years, which implies beginning to pay the debt from 2026 to 2034”.
In addition, the State disclosed that “progress will be made in a progressive fiscal consolidation that will reduce the fiscal deficit, within the framework of the recovery of economic activity and a gradual reduction of its monetary financing, as well as a framework for the implementation of monetary policy that will result in interest rates. positive real interest rates to strengthen the demand for assets in pesos”, while he stressed that “he does not foresee any pension reform.”
At the beginning of February, the country had made two payments to the body headed by Kristalina Georgieva for US$731 million and US$360 million, showing its willingness to comply with the established schedule. According to the stand-by agreement signed by Macri, the country had to pay a total of US$18 billion this year and another US$19 billion in 2023, a commitment impossible to fulfill considering the availability of the country’s reserves.
To advance, the government expects Congress to sign the bill into law before the end of March. After its eventual approval, the IMF Board will analyze it in depth before giving it its approval. On March 22, Argentina will face a maturity of US$3.2 billion with the agency.
Source: Ambito
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