Caputo sought to take calm to the markets and anticipated this Thursday’s opening informing the amount he expects from the fund. However, then the spokeswoman Julie Kozack, During a press conference in Washington, he said that the credit will be “considerable” but did not specify how much it will be. What he said is that disbursements will be in stages.
That issue made noise in the market, which at first took positively the announcement of Caputo, but then the initial enthusiasm dissipated and the uncertainty returned.
The IMF dollars, which were stated by the presidential spokesman, Manuel Adorni, will be “freely availability”, they anticipate key to reinforce the reserves of the Central Bank that, in the midst of the pressure on the exchange rate, reached minimums in 14 months. Since January, US $ 6,500 million were lost.
Within the framework of the announcement, Caputo said that together with the IMF credit, Additional flows of the World Bank, the IDB and the CAF that would lead the reserves to about US $ 50,000 million will be sought. In addition, he insisted that A devaluation is not planned.
The head of the Treasury Palace revealed that on Wednesday he had a conversation with the IMF managing director, Kristalina Georgievain which he agreed to publicize the amount that is negotiated.
The decision was made because several bureaucratic steps that can demand “several weeks.”
“Adding IDB, BM and CAF we will be around US $ 50,000 million of gross reserves. The monetary base is US $25,000 billion to the official dollar and the free change is US $20,000. Then, we will have more than twice as a reservations than monetary base, ”said the minister to account for the strength of the program that is negotiated.
In that sense, he said that “The level of support that in a few days will have the liabilities of the Central Bank we have never had. Not even in convertibility and also with fiscal surplus. ”
“Although I cannot give details of what the rest of the agreement is, it seemed important to say what amounts we were talking about and that the new agreement implies,” said Caputo, which reveals the level of concern in the government.
The minister said that the purchase of the non -transferable letters that the treasure will buy from the Central Bank with the silver that he will receive from the IMF will be “to market value”, which calculated “that on the margin there will be a fall in the gross debt”.
“With this we will end the dollar stress in Argentina because we are not going to return to the fiscal deficit,” the minister insisted.
He also emphasized that “the agreement should help compress the country risk and with that Argentina can return to markets to refinance the capital of the next maturities.”
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
