The five axes of understanding
According to the national government in a statement, “The country gains time and avoids exposing Argentina to default again”. After closing the agreement with the IMF, it will be sought to conclude the renegotiations of the “2014 Joint Declaration” with the Paris Club
At the same time, The understanding represents support for the Extended Facilities program during the two and a half years of validity.
After the meeting, and before the IMF Board votes on the agreement this Friday, the Argentine government reported that the Secretary General of the Paris Club, Emmanuel Moulin expressed his support for the program reached and congratulated the negotiating authorities.
The steps to follow will be the following, informed the Treasury: Argentina will conclude the refinancing with the IMF and then plans to close the debt renegotiation process with the Paris Club.
“Argentina will only have to make partial payments to the members of the Paris Club in proportion to those it makes to other bilateral creditors, in accordance with the terms established in the understanding of June 22, 2021”specified the national administration.
Payments to the Paris Club
Argentina made a payment for almost $190 million to the Paris Club on February 25as part of the agreement reached in the middle of last year, for which another disbursement of US$227 million had already been made at the end of July, both on the capital account of the total debt, which implied the execution of payments for around US$420 million over a period of eight months.
In total, considering the exchange rates of the payment orders processed, the equivalent of US$226.9 million was paid on July 28, 2021 and US$189.6 million on February 25, 2022which were discounted from a total of US$2.4 billion that Argentina had to pay on July 31, 2021.
Guzmán’s meeting with Alberto and Kristalina Georgiev
At the same time, Martín Guzmán participated via Zoom in the meeting that President Alberto Fernández held with the managing director of the International Monetary Fund (IMF), Kristalina Georgievain which both reaffirmed the importance of the Extended Facilities Program that will be discussed by the agency’s Board of Directors next Friday.
Fernández emphasized the “firm and determined commitment” to meeting the objectives of the Extended Facilities Program approved by Congress last weekin order to ensure that Argentina underpins the ongoing economic recovery and strengthens the conditions to reduce inflation in a sustainable way.
In this sense, the president stressed that the objectives of the Program are those of the Government. In the course of the conversation the broad parliamentary support and the strengthening of public investment in infrastructure were highlightedscience and technology and social inclusion policies and transition from social plans to genuine employment, among others.
Source: Ambito
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