IMF confirmed that there is still no date for the seventh review of the agreement with Argentina

IMF confirmed that there is still no date for the seventh review of the agreement with Argentina

The program review It is scheduled for November and is a key step necessary for the country to reach a staff-level agreement that, once signed by the Fund’s executive board, would trigger the payment of the next tranche of financing. However, many analysts have said they do not expect the Fund to schedule a review before the presidential election runoff on November 19.

“There is no date for the seventh review at this time,” a spokesperson for the Fund said in emailed comments in response to a Reuters request.

“As with any review of the Fund, we will need to establish that the program remains on track to achieve its objectives and that “There is work and more commitment to do.”added the spokesperson.

What did Argentina pay to the IMF?

This Monday, The national government paid US$790 million (the equivalent of SDR 600 million, the unit in which Special Drawing Rights – SDRs are expressed) to the International Monetary Fund (IMF) for the interest that was due this week.

The pay was made in yuancoming from the expansion of the swap, which was approved a few days ago for the equivalent of US$6.5 billion (US$1=7.31 yuan), which ratifies China’s new role as a lender of last resort in the world.

This is a last disbursement before the next evaluation of goals to the IMF. The cancellation came just 13 days before the runoff.

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IMF: why November is a key month

The next disbursement of US$3.3 billion from the agency depends on the November review. For now, the economic team confirmed that a mission from the Independent Evaluation Office (OEI) of the IMF will arrive at the end of the month, as announced by Minister Sergio Massa on Sunday.

The OEI is going to audit the loan that the IMF he did to former president Mauricio Macri. They anticipate that this will surely be the second critical report questioning the organization’s line towards our country and they are already negotiating the meetings it will hold. the mission that will arrive after the elections.

There was already an ex post agreement evaluation of Macri, a kind of peer review, which was even discussed at the board level and that of the OEI was missing, which is like the “internal affairs” office of the IMF. What you are trying to determine is if there was malpractice in management.

Source: Ambito

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