Argentina has been demanding that the multilateral organization review its policy of surcharges, which consists of charging an additional interest rate to that charged on loans that exceed the quota.
The request for the revision of surcharges is not exclusive to Argentina. At the time, the G20 asked the IMF that the issue be reconsidered. The recent statement made by the IMF spokesman, Rice before a consultation from Ambito, pointed out that “it is expected that the policy of surcharges will be dealt with in the framework of a broader discussion regarding the precautionary policies of the internal review.”
It is recalled that the loan granted to the former government represent 1000 percent percent of the relevant quota Argentina. The IMF also charges for the time remain passive Over quota.
Calculations by the Ministry of the Economy show that these surcharges imply an additional expense of the order of 1,000 million dollars per year.
President Alberto Fernández at the time had established as an indispensable condition to advance in an agreement with the Fund that these surcharges be eliminated or reduced, although in recent times in the corridors of the Casa Rosada they relativized this position.
Likewise, Argentina hopes that the IMF establishes a new loan of greater length than the Extended Facility Loan for a maximum of 10 years, which is the one that Minister Guzmán is negotiating with the staff.
In this sense, what the government is asking is that, if a larger loan is established, the new agreement establishes a pari passu clause that allows access to these better conditions.
Source From: Ambito
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