Argentina requested a Loan of US $ 20,000 million to the International Monetary Fund (IMF) The Minister of Economy affirmed this morning, Luis Caputo. Still It is expected to have the final approval of the agency’s Board.
The decision to announce the amount was taken after the head of the Palace of Finance discussed with the head of the agency, Kristalina Georgieva in what is interpreted as a I try to calm the tension that has been registered in the exchange markets. The minister stressed the importance of backups and pointed out that he is not worried about volatility.
President Javier Milei was analyzing the economic situation with Minister Caputo at night.
Last week, a cable from the Bloomberg agency anticipated that on Tuesday an informal meeting was going to be held between its technical team and the IMF executive directory. This meeting was considered a key step towards an agreement at the staff level to reach a new assistance program to the country. The information realized that, according to the sources cited, The IMF will evaluate an agreement of facilities extended for four years, with an estimated amount of about 15,000 million special turn rights (DEG), equivalent to about 20,000 million dollars.
This meeting was confirmed by official sources of the agency that said: “The Technical Team of the Fund is holding consultations with the Executive Board. The conversations about a new program backed by the Fund are advanced and within the framework of our usual internal processes. “
Days ago they generated Uncertainty The journalistic statements of Minister Caputo when he did not ratify the continuity of the “Crawling Peg” scheme. In the midst of rumors about a possible IMF demand to make exchange adjustments in exchange for sealing a new agreement for debt Disarmament operations of “Carry Trade” strategies were recorded.
In this context, alternative dollars yesterday crossed the $ 1,300 barrier, a level that were not reached since September last year. In the last seven wheels the Central Bank had to sell more than US $ 1,300 million to prevent the gap between the official exchange rate and the alternatives from shooting.
However, in the government there is Optimism for the progress of negotiations with the International Monetary Fund to define a new program of assistance. “The Technical Team of the Fund is holding consultations with the Executive Directory,” IMI sources confirmed at the beginning of the week Scope and completed that conversations about a new program are “advanced” and within the framework of their “usual internal processes.”
In some cases the support was explicit. Last Tuesday, the president Emmanuel Macronafter a telephone conversation that he had with his Argentine pair, Javier Mileihe said on social networks “The Argentine people can always count on France’s support”.
The Galas authorities They are not the only ones the Argentine government was reported. Without good there was no official confirmation, this medium could know that There were other dialogues that resulted in the support of nations such as Italy and the United Statesthe country that has the most weight in the Board in the Fund.
In this sense, the good personal relationship that President Milei has so much with the head of the Council of Ministers of Italy must be taken into account, Giorgia Meloni, as with the American president Donald Trump. In this way, Argentina is considered in principle, already It would have the support of the countries that gravitate the most in the background, that is, the US, China, Germany, Italy, France and Japan.
In the Casa Rosada, secrecy is maintained on the progress of conversations with the IMF and there is no talk of dates, but sources close to the negotiation indicate that “There is tranquility and confidence that profile a favorable resolution.”
It is estimated that the future of The exchange policy would only be known when the agreement with the International Monetary Fund was finished. The President Javier Milei He said that he would be completed in mid -April, although in official media it is not ruled out that the date is run until the end of next month, but uncertainty could be cleared before when the technical agreement (Staff Agreement) is released.
Effects of the agreement with the IMF
“The level of support that we are going to have in a few days on the liabilities of the Central Bank we have never had even in convertibility”Caputo explained. His words are given at a time when the tension on the exchange system materialized with increases in the contributions of financial dollars and blue. BCRA reserves are on low and reached their scarce levels in 14 months.
“With what we are asking to the IMF, more what is IDB, World Bank and CAF we will be around 50,000 million gross reserves. How much is the monetary base today to Argentina measured in dollars? The official exchange rate is approximately 25 billion dollars, at the free exchange rate it is approximately 20,000 million. We have more than double reserves in dollars than there is base,” Caputo said.
The minister said that in the government they trust that The funds that the IMF will rotate by the agreement will help avoid jumps in the dollar. And he reiterated for the umpteenth time that the devaluation is not a requirement of the organism and is not in the exchange policy plans dictated from the Treasury Palace.
He also said that the decompression of the exchange tension will have an effect on the country risk, which in recent weeks rose above 700 points. “The agreement with the IMF should help compress the country risk. What will generate in time is for Argentina to recover access to markets,” said El Caputo.
Source: Ambito
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