The agency’s technicians and senior economic management officials they are already working in this reformulation in which “All or some of the goals could be modified”according to sources from the Ministry of Economy to Ambitand added that “other instruments could also be used such as expiration postponements either disbursement advances”.
The owner of the Treasury Palace, Sergio Massaplans to meet this Saturday at 14in Washington, USAwith the Fund holder, Kristalina Giorgieva, to continue advancing in the talks. You will also meet with the owner of the IDB for the purpose of getting more financing.
“We talked about the impact of the worst drought in the history of Argentina and we promised to keep working together closely to strengthen the program in this difficult scenario”, he pointed out this Saturday, in a tweet, Gita Gopinathdeputy director of IMF after the meeting he had the previous day with the minister Sergio Massa.
After clarifying that “This is not a new program”sources of Treasury Palace they pointed out that “all options are open”. In this sense, part of the economic team will remain in washington negotiating reconsideration of the program, while the minister could return in a couple of weeks to end the talks. It can be estimated that in the last revision the Background had estimated a loss from exports at about $5,000 when in reality it is estimated that it will be US$14 billion.
Given the seriousness of the situation, the purpose is that the changes are reflected before the next review of the program, the fifth, which must be carried out in June.
On Friday Gopinathwith Nigel Chalkdeputy head of Department the western hemisphere, and Luis Cubedduhead of the mission for Argentinathey met with Massahis chief adviser Leonardo Madcurthe vice minister gabriel rubinsteinand Marco Lavagnain charge of international negotiations.
The officials of the multilateral organization recognized the effort of the Argentine government in the fiscal field carried out over the last part of last year, but also considered that “the rules of the game had changed” after the impact of the drought that much higher than initially estimated.
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In economic leadership they maintain that this change in the program was facilitated by the support of the USAthe main contributor to Background. It is also anticipated that the IMF work in coordination with the world Bank and the Inter-American Development Bank to achieve back that allows stabilizing the Argentine macroeconomic situation.
From this point of view, it transpired that the country will try to place two dollar bonds by US$1.2 billion with guarantee of world Bank and of the Development Bank of Latin America (former Andean Development Corporation).
Both the economic team and the staff of the IMF will continue working for adapt the program depending on the new scenario posed by the drought. According to private estimates, Argentina should not only not pay the IMF the maturities of this year (about US$4,000 million) but also to obtain additional funds above the US$4,000 million.
Source: Ambito
