“We put forward the absurd contradiction between development agencies and the IMF when looking at public accounts. While some consider disbursements as investment, others consider them fiscal deficit”hill.
Massa participated in the Annual Assembly of the IMF and the World Bank, which included interacting with the G20 and with the Monetary-Financial Committee of the IMF and the Development Committee of the World Bank.
This same position was made known to the heads of the World Bank, David Malpass, and the IMF, Kristalina Georgieva: How can it be that, on the one hand, the World Bank forces it – to grant loans – to put funds for, for example, the Progresar Plan or an investment in infrastructure, and then the IMF computes that amount as an expense that adds to the fiscal deficit ?
This apparent contradiction was raised by Massa also in the IDB forum. Sources consulted by Télam expressed that the IMF, if it advanced in any initiative of the kind, would turn to seek a multilateral solution and one at the bilateral level, so as not to limit the discussion only to the Argentine case, although the times of the organisms are usually slower.
“It is time for the Fund and the rest of the G20 countries (and therefore also the IMF) to decide what measures they will take and how they will pay the countries that take credit from the organizations”, said Massa in a talk with journalists. Immediately afterwards, he explained that “the war in Ukraine cost Argentina about US$4.9 billion”, between reserves and fiscal deficit, two of the three goals required by the IMF.
Regarding the IDB, Massa managed to sign the US$700 million that will go on to increase reserves; and the confirmation that the staff of this organization approved the technical report for the board to deal with the US$500 million that were pending. Regarding the presidency of the IDB, the Argentine position is to take advantage of the recent dismissal of Maurico Claver Carone so that the Southern Cone region and Mexico recover the historical leadership of the entity.
Regarding the Paris Club, Massa pointed out in Washington that “the agreement is almost closed”and at the end of the month he will travel to reformulate the new conditions for the debt of some US$ 2,400 million, which pay an annual interest rate of 9% and which Argentina aspires to lower, in addition to reducing the terms.
Source: Ambito
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