For months, and more frequently in recent weeks, there has been speculation about the probability, which is no longer zero, that Argentina defaults or falls behind in the IMF. HoweverHow is the process that would be activated in the event that Argentina falls into default with the agency? For this, it is necessary to abide by what was ruled in July 1989 by the Board of Directors of the Fund that Michel Camdessus commanded at that time. On that occasion, the IMF Board established the procedure for dealing with members with overdue financial obligations to the General Department and the SDR Department. This kind of roadmap is nothing more or less than a series of “corrective measures” to apply when a country falls behind in payment. In the first place, it must be clear that there is no grace period with the agency, so that if an expiration date is not met, it falls into default from that day. This, on the one hand, inhibits the defaulting country from accessing new financing from the Fund, nor using what is available, if any.
Source From: Ambito
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