As reported to Ambit sources of Ministry of Economythis Tuesday, the minister Sergio Massaobtained disbursements from Inter-American Development Bank (IDB) and of the World Bank (WB) for some US$1.300 million, which will be added to those that will arrive from the Monetary Fund (IMF) this Wednesday.
He BM would contribute US$750 million of that total and the The remaining US$550 million would come from the IDBit was reported, and they would be added to the US$7.5 billion that “are expected to arrive from the IMF tomorrow,” as confirmed by an official source to this medium, in line with what was agreed before the primary elections by the agency.
Massa pointed out, in a press conference, that the objective of these disbursements agreed with the agencies is to guarantee food security and access to import credit and access to dollar for exportsin the case of world Bank. Meanwhile, with the dollars of the IDB the construction of public works and the increase in financing for knowledge economy.
The details of the agreements with the IDB and the WB
“The idea is to complete a quota of US$1,300 million between now and the end of the year. They are essential to strengthen Reserves of the Central Bank (BCRA) but also to finance the country’s development,” said Massa. And he clarified that these funds are added to what will be announced tomorrow within the framework of the agreement with the IMF.
He also assured that the objective is that grow exports of SMEs in Argentina to encourage sales abroad with value added.
Let us remember that the massa aspiration was to expand the amount of disbursements expected from the Fundbut, since the document is already signed Staff Level Agreement (SLA), began to look for other alternatives. And, in this framework, it is that these agreements with the other credit organizations arise in the framework of the start of activities of Massa in Washington, United States.
There, this Tuesday, he participated in a meeting with the managing director of Bank Bank Credit Operations, Anna Bjerde, in which they reviewed the financing plans between the entity and Argentina. Likewise, later it was the turn of the meeting with the IDB President Ilan Goldfajn, with whom the institution’s assistance to Argentina was also evaluated. As a product of both meetings, this announcement was made.
Regarding the agreement with the IMF, Massa confirmed that the amount of US$7.5 billion has already been secured and anticipated that with part of these funds it is necessary to cancel the commitments with CAF, China and Qatar, which facilitated the loans that were used to meet the previous maturities with the IMF and that “The objective is keep accumulating reserves in a year, which is the most tragic for Argentina in economic terms due to the drought impact“.
He pointed out that this climatic phenomenon generated a imbalance in the relationship with the IMFbut that the Government is focused on continuing to develop financing without stopping the economic activity of the country while seeking to solve this problem of lower income of dollars.
Regarding the result of the PASO, Massa pointed out that this has no impact on the decisions that the IMF will make regarding disbursements, but he did say that the IMF communicated its concern that one of the most voted candidates has promised an economy that uses the dollar as legal tender. “I assume they’ve talked to the proponents of that about how it’s going to be done,” he said.
Thus, Massa expressed himself in the conference that he held today at 4:00 p.m., in which Massa spoke about these financing agreements with the WB and the IDB and the negotiations with the IMF.
Source: Ambito
