The IMF executive board is expected to approve the postponement, as well as $4.7 billion in financing, at a meeting this Wednesday.
He International Monetary Fund (IMF) decided to postpone the final review of its current $44 billion loan for two months – from September to November – giving the government more time to implement reforms and negotiate a new program,
The Fund and countries are subject to a schedule of progress reviews, which, once approved by the Fund’s executive board, triggers the disbursement of tranches of financing. In the case of Argentina, this is the first time that the date of the last review of a loan agreed in 2022 has changed.
The IMF executive board is expected to approve the postponement, as well as $4.7 billion in financingin a meeting this Wednesday.
The postponement seeks to give the Government of Javier MIlei more time available to “guarantee that the program meets its objectives,” said one of the sources.
The remaining three reviews, from May onwards, will generate a total of $1.9 billion in disbursements.
“The country could always negotiate a new program before the current loan ends, but now it has more room to maneuver until the end of the year to decide what it wants to do,” another source said.
Source: Ambito
