Argentina obtained significant support from G20 for this request according to the information provided by the Ministry of Economy, “the G20 Finance Ministers and Central Bank Governors requested that the IMF review its policy of surcharges, in support of the claim that Argentina has been proposing ”.
The reasons why the agency did not reach a definition on the issue of surcharges was explained by the head of the IMF: “In the discussions within the organization there are reservations regarding freezing the surcharges, mainly derived from the concern to preserve the strength that the Fund must maintain in the context of the international crisis”, Georgieva asserted.
After clarifying the reason for the discrepancy, he emphasized that the issue “is not resolved in one sense or another.” And for this reason, what if there was support from the members of the Fund is “Periodically review the flight attendants.”
For his part, the entrepreneur of Aluar, Javier Madanes Quintanilla who participated in the luncheon convened by the president on Tuesday, commented that several of those attending the luncheon were very interested in learning about the issue of negotiations with the IMF.
Alberto Fernández himself pointed out via twitter that “we had an excellent meeting with Argentine businessmen in which, among other issues, I reported on how the negotiation with the IMF is progressing for the debt we inherited from the previous government.”
According to Quintanilla, the head of state explained to them the status of the possible agreement. “The president explained to us what his strategy is for closing an agreement that he considers essential and clarified that the entire government coalition also considers it that way. He fixed times, specifically he mentioned the first quarter of next year ”, Quintanilla said.
The first president also told them why today is not the time to close the agreement and referred to “fundamentally to the discussion of the surcharges that Argentina would be paying if this is not renegotiated “added the businessman.
It should be noted that in the presidential environment always it was commented that the issue of flight attendants was an obstacle to closing the deal.
Is that the additional amount that Argentina has to pay for this concept is not less. The Argentine quota of the IMF amounts to about US $ 4,540 million. The current loan with the country reaches US $ 45,453 million at present value, according to calculations by specialists. 187.5% of the quota is equivalent to US $ 8,490 million, from which the country pays surcharges for US $ 36,963 million. The 2% surcharge is equivalent to US $ 738 million.
In the Government they calculate that, over time, the accumulation of these interests (the refinancing would be at no less than ten years) would imply an additional payment close to US $ 10 billion.
Another point that Argentina claims are the grace periods so that it does not compromise the country in the short term. Extended Fund Facilities loans generally have a grace period with a grace period of 5½ years, and a final maturity of 10 years.
The Argentine Government proposed to the Fund the reduction of the surcharges that it applies in the payment of the debt for having exceeded 187% of its quota in the credit taken in 2018 by the management of Mauricio Macri. It should be noted that, if the body’s board of directors decided on this change, it would be for all countries and not for one in particular.
Agreement
Kristalina Georgieva at the question of Ambit Regarding when the agreement with Argentina can be signed, he stated that they “continue working.” He rescued the “commitment from both sides” to define a program that serves so that the country “can have firm policies to induce private growth, generate genuine employment and the good use of public resources to prop up those who most need support” .
Giorgieva said that the negotiations between the IMF and the Argentine authorities aimed at reaching a new agreement continue “in a constructive manner” and with “a commitment from both sides” to move forward. However, he did not specify when the understanding would be signed.
“I met with the minister (Martín) Guzmán, the commitment is to work constructively. We have to find a good point of agreement, where a program for Argentina is seen as credible and useful for the people and so they can support it, “he said.
It should be remembered that yesterday, President Alberto Fernández assured a group of important businessmen that the agreement is close to being achieved since the country faces maturities of almost 20,000 million dollars next year that are impossible to face. Precisely the businessmen stated that they were more “optimistic about the future with the IMF”
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