After months of negotiations, Argentina reached an agreement at the technical level with the International Monetary Fund (IMF). The multilateral credit agency confirmed that it will be for US $ 20,000 million and will have a period of 48 months. In the next few days it will be treated in the Directory of the organism.
He Background announced tonight that an understanding was reached with the government of Javier Milei for the new “integral economic program” that within the framework of the Extended Facilities Program for a total of 15,267 million special turn rights (DEG). The total amount is equivalent to 479% of the country’s fee.
The IMF confirmed an agreement with Argentina for US $20,000 million
“The agreement is based on the impressive initial progress of the authorities in the stabilization of the economy, based on a solid fiscal anchor, which is generating rapid disinflation and a recovery of the activity and social indicators,” said the IMF in a statement.
In addition, they affirmed that the program aims to support “the next phase of the agenda of stabilization and reforms from Argentinawhose objective is to consolidate macroeconomic stability, strengthen external sustainability and generate solid and sustainable growth, while managing the most complex world context. “
In it Government calm abounds on the outcome of the agreement in the Board. In addition, they consider that the announcement of the agreement at the technical level will bring tranquility in local markets, after turbulent weeks in which the reserves of the BCRA They were very beaten by international uncertainty and doubts about IMF’s disbursement.
With the confirmation of IMF, The libertarian administration is aware of the board of directors. If this week is completed, it would be good news so that the downward trend of the reservations, at a key moment for the Argentine economic team.
Anyway, it still remains to know details of understanding, such as the date of the first disbursements and the volume of each section. Days ago, the director of the IMF, Kristalina Georgieva, considered “reasonable” Argentina’s application for a first disbursement of the order of 40%.
“It is a reasonable request. They have earned it, given their performance”he affirmed to the international agency Reuters the Bulgarian economist, who recognized Argentina’s efforts to finally address the Economic reforms long expected.
In the government they expect the first payment to be “important.” This was advanced by the Minister of Economy, Luis Caputo, in statements to the press, who also announced that the credit will be “Free availability”. In that line he insisted that It will not be “new debt” but the repurchar will be used INTRANSFERIBLE LETTERS who are in the hands of BCRA
Source: Ambito
