First, it was confirmed that the program will adopt the modality of a Extended Fund Facity (EFF), with a duration until 2035. This scheme contemplates the refinancing of the payments planned for the next four years and a grace period of four and a half years before starting the return of the funds. In this way, the agreement extends again the payment terms of the debt, leaving a future administration the responsibility of fulfilling the commitments assumed or renegotiating them.
It is important to note that an EFF is an IMF program with objectives previously defined by the agency. In most cases, its purpose is to correct imbalances in the balance of countries. On this occasion, The main objective, declared by the Government, is to clean up the Central Bank by canceling the debts of the National Treasury with the BCRA and with the IMF itself.
In accordance with the first article of the official document: “Public credit operations contained in the extended facilities program to be held between the National Executive Power and the International Monetary Fund are approved, which will have an amortization period of ten (10) years.”
In addition, the DNU published in the Official Gazette on Tuesday, with immediate validity, establishes that the funds obtained will be allocated to:
- Cancel non -transferable letters in US dollars held by the BCRA, prioritizing those closest expiration.
- Cover obligations derived from the extended facilities program signed in 2022, whose maturities operate in the next four years.
The government justifies this measure as a necessary step to strengthen international BCRA reservesguarantee macroeconomic stability and reduce financial volatility. According to official data written in the decree, in December 2023, the net reserves of the Central Bank were negative at US $ 11,200 million, while as of March 6, 2025 they had increased by US $ 7,034 million. However, this data confirms that, despite the improvement, net reserves still continue in negative field for more than US $ 3,000 million after a year and three months of management.
What data omits the agreement with the IMF
“Omits all key details, such as magnitude and disbursement schedule, goals and conditionalities, among other aspects. The most relevant thing is that it confirms that it will be an extended facilities program (EFF), a long -term agreement with a grace period of four and a half years before starting payments, “said Gabriel Caamaño, economist of the consultant Ledesma, in dialogue with scope.
In additionamong the points not specified in the agreement are the total amount of financing, the applicable interest rate, the associated conditions and the macroeconomic goals which will be monitored by the IMF, a usual aspect in this type of programs.
Another key fact that remains in the inkwell is linked to the amount of the additional funds that the government will have. Recently, Bank UBS said the IMF would provide an additional US $ 8,000 million to the government. Within the report itself, they point out: “The new FMI funds will be key for Argentina of ubs.
It is important to remember that, in 2022 toRgentina received a loan of US $ 44,000 million under an extended facilities program, which used US $ 41,000 million. This capital must be paid between 2026 and 2034. During the mandate of Javier Milei, the Government faced payments for US $1,000 million in Capital YU $ S9,000 in interest. In this context, although these details are omitted in the new program, analysts indicate that the agreement would be better than expected.
The panorama is expected positive for markets
According to UBS analysts, This agreement establishes a roadmap for the elimination of exchange stocks and the transition to a more “flexible” exchange rate. Some time ago, President Javier Milei himself had advanced his intention to move towards a “flotation scheme” of the exchange rate.
For markets, This scenario represents a favorable panorama in an electoral year, where the main catalysts are the agreement with the IMF and the expectation that the coalition of freedom progresses bears banks in Congress. TO Despite a challenging global context, at the local level the main risk remains the level of support for the current management.
Source: Ambito
