It should be remembered that if the credit owed by a country exceeds 187% of the assigned quota, the surcharges are 200 basis points above what has already been determined for interest payments. And if this excess is maintained over time, an additional 100 basis points is applied. That is, the credit that Argentina received for 44,000 million dollars during the previous administration, it has a cost overrun of 300 basis points.
The Argentine government had the expectation that the matter would be reviewed at the Board meeting held in October, at which time no changes were made. The arguments of the directors who oppose modifying the surcharges are based on the fact that they are necessary for an adequate management of the risks in the credits that the Fund grants.
However, this position is criticized by those who argue that this extra burden does not make sense since the Fund is a lender of last resort that is precisely there to help countries with difficulties in their external accounts.
At the last G20 meeting held in Rome, the president Alberto Fernandez raised the issue with the owner of the Fund, Kristalina Giorgieva, who assured him that it would be discussed at the Board meeting in mid-December.
On that occasion, a statement from the G2O was also released requesting the IMF to reverse its policy of surcharges.
Source From: Ambito
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