Other officials such as Gustavo Beliz and the Argentine ambassador in that country, Jorge Arguello.
The first item on the work agenda is a meeting in Washington with the IMF staff. It will be the first “face to face” of Martín Guzmán with the authorities of the organization after the approval of the agreement with the Government.
Just a few days later, a new Resilience and Sustainability Fund was approved, which has much more advantageous financing conditions than the Fund’s traditional loans. In that sense, Argentina could aspire to obtain some benefit, as it is a middle-income country where the international context hits it hard, among other factors.
The “new fund” has the characteristic of offering a term of 20 years at lower rates. It will initially have a capitalization of 45,000 million dollars for all countries that can qualify. That amount is almost the same as the entire loan that Argentina has just renegotiated with the IMF. In this way, Argentina could aspire to change its financing conditions, although in a more moderate way than it anticipated.
Although there is no certainty about the definitions of this plan, the head of the IMF, Kristalina Georgiev, announced that it will be operational as of May 1. That is why Guzmán and Pesce will try to move forward with the measure, something that they had already expressed in the letter of intent that requested the loan and the new program with the IMF.
There they had indicated “to confirm if, at some point during the duration of the extended facilities agreement, the Fund creates a new financing line with better terms and for which Argentina is eligible, Argentina could have the opportunity to use that new line , in accordance with IMF policies and procedures.
Both Pesce and Guzmán will go with the numbers to show progress in the established goals, and in preparing the ground for the first review of the Fund in the country, which will take place in May. Meanwhile, the Central Bank increased the interest rate to 47% on the eve of the Easter holidays, in line with the IMF’s recommendations to move towards positive real rates.
Source: Ambito
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