Sources close to Massa told Ambit that everything is going “in line with what was previously thought”, that is, that the review has not met with major objections and that, in principle, it would lead to the approval of the objectives set for this part of the program.
This would imply that, on the one hand, the Argentine government did not see the need to request any waiver (forgiveness) for the breach of some point of the agreement and that, on the other hand, it has not been renegotiated either, so far in the meetings. some sensitive point, for example, the low level of accumulation of reserves in the BCRA.
It is vital at this level to value what happened in the meeting held yesterday, here in the United States, by Sergio Massa with advisors Jake Sullivan, Mike Pyle and Juan González. The sources maintained that, in the White House, the conversation revolved around the possibility that, if necessary, the Treasury, through the IMF, could activate some additional aid in the short term.
In any case, they maintained that it is a negotiation for now that is not peremptory and that the meeting with David Lipton, adviser to Janet Yellen, the head of the Treasury, and the meeting with Georgieva, both next Monday, are awaited.
Reserve level
One of the points that almost all the conversations with the IMF had in common was the problem of the accumulation of dollars in reserves. For this reason, it is understood that, in the midst of the Massa meeting rally in the United States, those that provide fresh funds immediately stand out. The reestablishment of the agreements with the IDB, for example, contributes in this sense, by announcing a line of credit for US$3,000 million, as part of an agreement reached to reprioritize the country’s loan program for the remainder of the year. and increase the dollar coffers of the Central Bank (BCRA). This includes the shipment of US$500 million by September 30 and another US$700 million for the end of the year. While for next year, the transfer of at least US $ 1,800 million was set, the authorities reported.
As was said, the pact translates into a reopening of the IDB with the country and, they maintain in the organization, a show of support for Argentina to add foreign currency to the Central Bank, since of this year’s total, about $1,200 millions will go straight into the national reserves. In addition, the president of the IDB, Maurice Claver Carone, announced that additional loan operations are expected to be submitted to the Board for an amount of US$725 million to finance investment projects, totaling US$2,370 million in the entire 2022 period.
In statements to the press, Claver Carone said: “If the minister’s mission was to unblock the relationship with the IDB, we can say that the minister has accomplished a mission.”
“We have been able to unblock what was stuck and with a direct route,” remarked the president of the IDB and added: “His criticisms had occurred when Argentina had an erratic macroeconomic policy. We ask for a cohesive economic policy.”
“Now with the minister we have a cohesive policy and we can support Argentina. Good time, mission accomplished,” he celebrated.
Source: Ambito
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