Argentina would get about US $ 1,300 million. But in addition, a new line of credit could be generated, with longer terms and a longer grace period, which could alleviate the refinancing of the more than US$45 billion that Argentina owes the IMF. The Minister of Economy has already anticipated that he will seek to make use of the mechanism if it is approved.
The meeting takes place within the framework of an international context mobilized by the consequences of the war between Russia and Ukraine. Difficulties in access to inputs, energy and food prices will be central to the multilateral agenda. Tomorrow the organization’s chief economist, Pierre Olivier Gourinchas, will present growth and inflation projections for the entire world.
In the midst of the price escalation reflected by INDEC in the months of February and March, the World Economic Outlook report will highlight the agency’s forecasts for Argentina. The 48% ceiling for inflation agreed in the Extended Facilities program seems like a difficult path to follow with the rise of raw materials at the international level.
Anyway, in the Palacio de Hacienda they emphasize that this figure is an estimate and not a goal. The clarification is not minor, because the approval of the reviews depends on the achievement of goals, therefore the confirmation of disbursements. In that sense, in Guzmán’s team they say that “there is still a long way to go”, but that Argentina is on track to successfully pass the first review.
On May 10 and in each successive quarter, the Fund will assess three criteria: the accumulation of net reserves, which grew with the initial disbursement; the primary deficit, which was limited in the first quarter of the year; and the monetary financing of that red, which the Government has been limiting. Then, in the program there were other commitments that are not binding, such as the modification of the budget that was scheduled for April 14 and that will materialize, with delay, in the coming days.
In any case, in the Executive they trust that the disbursement of more than US $ 4,100 million will be confirmed without the need to request a waiver. Although at this point, no one can rule out that in the future the goals will be “recalibrated”, especially those linked to the cut in energy subsidies that with the explosion of LNG seem impossible to meet.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
