On the reasons behind the need for disbursement, Milei justified: “The money entering the IMFthe treasure will use it to cancel part of its debt with the Central Bank, so that the gross debt does not rise and in case it is used to rescue titles whose market value is under the torque, it will fall“
“We have modeled many scenarios to approve it, the staff agreed and now sends it to Board, which decides if it puts the hook,” He explained who the Minister of Economy was during the signing of the country’s last agreement with the IMF, during the year 2018. However, the official avoided giving details about the amount of disbursement, on which he said that “for the moment it is confidential.”
On the side of the financial agency they also left several winks to libertarian management, although for the moment avoid giving dates of the imminent firm. As detailed by the FMI spokeswoman Julie Kozack, the negotiations “They continue constructively“He added:” Once the negotiations are completed, as is the case with any proposed IMF program, the final agreement, the documents, They will require the approval of the Executive Board”
In this sense, since the entity conducted by Georgieva analyzed that “the stabilization and growth plan of the authorities is generating significant results. It has made great efforts to reduce inflation, stabilize the economy and forge a return to growth in the country. And poverty is finally beginning to decline in Argentina”
During the last days, Milei defended the criticism of the new agreement and assured that this will “restore the assets of the BCRA, so that in this way Inflation is just a bad memory of the past“
In that line, Caputo He denied that the fund has requested a devaluation And he said that nor does it foresee pronounced jumps in the exchange rate for this year. “The background never asked us devaluation. The program had it defined with the IMF in the basics for a lot, this last time it was more to define how many new funds were going to be required to improve the assets of the assets of the Central Bank and that there is support according to the level of liabilities. That was what took the negotiation last time. ”
Without dates but with a clear good harmony, the government protects the details of the agreement and, for the moment, the date of the firm and the subsequent disbursement that, from Casa Rosada, hope they can pave the way for the exit of the stocks is unknown.
While the figures are also unknown, according to a report from the Swiss Bank UBS disseminated in recent days, The financing would exceed US $1,000 million, which is the figure corresponding to the amortization of the debt with the IMF in the coming years. However, the entity estimates that They could add up to about US $ 8,000 million, a number similar to the obligations for debt interest.
According to the IMF: the Government sent a DNU to authorize the firm and generated the opposition claim
Beyond the economic plan, the signing of the agreement with the Financial Agency also represents a political challenge for the Government. In the last hours, libertarian management took the first step and confirmed sending a decree of necessity and urgency to obtain authorization to advance negotiations with the IMF.
It should be noted that the initiative, which finally instead of a bill will be a DNU with the aim of expediting its approval, will only have the authorization request to reach a new agreement but will lack any technical detail about the progress of the negotiations. The president’s decree begins to govern from the moment of publication, which would allow progress in negotiations beyond the subsequent treatment in Congress.
The announcement of the ruling was not exempt from controversy: Milei went from promising that “in the next few days” he would ask the Congress to “support the government in this new agreement with the IMF” to announce that, DNU through, would authorize himself to advance the negotiations.
Milei.jpg speech congress
Days before, the president himself had said that would respect the rules of the game. This is: that it would comply with the law sanctioned in 2022 – colloquially known as Guzmán Law – which establishes that any agreement with the Fund must be expressly approved by Congress.
Even hours before the statement, the chief of Cabinet, Guillermo Francos, had said: “The possibility that the approval of the agreement with the IMF is by decree is not real.” But it was.
The next path of the DNU will be the same as any other: to begin with, It has the force of law since its publication. After this, the text that the president, the chief of Cabinet and all his ministers, is sent to Congress. In this scenario, the Executive Power has a maximum period of 10 days to send the decree.
Then, the DNU will fall into the hands of the Bicameral Commission for Legislative Procedurein charge of ruling around the validity of the DNU. If the PEN does not send it, the bicameral can be avocated the same. If that work body is not pronounced within 10 business days, both the body of the Chamber of Deputies and the Senate remain enabled to take the text to the enclosure and approve or reject it, with a simple majority.
It should be noted that It is enough that one of the two cameras accompanies the decree to stand up. In other words, for the authorization of the agreement to fall, both chambers must express their rejection.
From the IMF they remain outside the internal political discussion. The organism conducted by Georgieva insists that It is not a requirement for the fund I know Have the approval of the Argentine Congress Because, they point out, it is a government decision. In a nutshell, what happens in the enclosure will not be binding on the background the response of the Argentine Parliament.
Finally, the IMF spokeswoman concluded: “We take into account President Milei’s commitment to seek support from Congress to a new program“, And recalled that, although it is” key “for the success of the program that has broad support” to obtain the support of Congress is a decision of the authorities according to the provisions of Argentine internal legislation. “
Source: Ambito
