The purpose of the arrival in Argentina of this mission ““is to continue negotiations on the seventh review of the IMF-supported program,” that is, within the current Extended Facilities agreement.
According to the organization, “the objective remains to support ongoing efforts to restore macroeconomic stability for the benefit of Argentina and its people.” In another order, confirm that “The authorities have exercised their right as a member of the IMF to group the repurchases that expire in January and pay them at the end of the month.”
This Tuesday morning, Adorni reported that “On Thursday we will receive a delegation from the International Monetary Fund (IMF). The Chief of Staff will receive it, [Nicolás Posse]and the Minister of Economy, [Luis Caputo], in line with renegotiating the agreement that fell due to not having complied with the agreement. He himself is virtually down.”the presidential spokesperson announced this Tuesday Manuel Adorni.
“The intention is to continue with the current Extended Facilities Program, achieve waivers (forgiveness) for non-compliance and adapt the goals”he specified Ambit a high fountain of the Palacio de Hacienda.
Within the framework of the usual press conference held in the mornings at the Casa Rosada, the spokesperson did not give details about the meeting and suggested waiting for the talks to take place. “probably Friday.”
Meanwhile, in the Casa Rosada they maintain that the president delegates the link with the IMF to his officials. “The agreement is not something that worries the president”a source close to him commented to this medium given that “the adjustment we propose is much greater than the goals established in the Extended Facilities agreement”.
The country has failed to meet the different goals set out in the agreement reformulated in the previous administration, both in terms of the accumulation of reserves and the fiscal imbalance.
President Javier Milei He always indicated that his government’s objective is to carry out a more severe fiscal adjustment program than that proposed by the IMF, since it plans to achieve not only primary balance (before payment of interest) but also financial.
This is what the new government made known to both Rodrigo Valdes, director of the Department of the Western Hemisphere, as Luis Cubeddu, head of the Fund’s mission.
Indebtedness
In the media of the Ministry of Economy they deny the versions that circulated that the country could receive extraordinary aid from the Fund, in the order of 15 billion dollars. They do not rule out that the country could receive fresh funds, but it would be a matter of “a much lower figure”, they maintain. And they add that, if these resources are obtained “They will be used to accumulate reserves.”
The team led by Caputo believes that the emphasis should be placed on achieving fiscal balance and not in seeking an increase in debt.
The country must face the cancellation of debt with the IMF for USD 1,915 million in January, USD 763 million in February and USD 1,915 million in April, which totals about USD 4,592 million in the first section of the year.
At the same time, there are another USD 1,633 million to settle with other multilateral organizations between January and April, divided into approximately USD 436 million in January, USD 214 in February, USD 725 million in March and USD 257 in April 2024.
Source: Ambito
