The IMF is moving forward with a decision that could benefit Argentina by US$12 billion

The International Monetary Fund met informally this week to discuss changes to its surcharge policy. According to information obtained by Ámbitothe multilateral organization would be willing to grant a reduction in the extra interest it charges to countries that are indebted above their quota. In the same vein, it could accept a downward revision of the base rate and an increase in the limit from which penalties are charged. A formal meeting will take place in October, where a decision could be announced that favors Argentina, which pays more than US$700 million a year for this policy.

The discussion between Argentina and the International Monetary Fund to reach a new program has an uncertain future for now. The latest development in this regard was the departure of Chilean Rodrigo Valdes, He will continue to serve as director of the Western Hemisphere, but will leave the negotiations with the Javier Milei administration in the hands of his deputy, Luis Cubeddu.

However, this does not guarantee that the parties will agree on the policies to be implemented in a future program. Much less does it ensure the arrival of fresh funds, something that the Government hopes for in the event of a Donald Trump victory in the United States, a conclusion that seems at least risky.

However, Javier Milei could receive good news from Washington this yearOn Monday, the IMF’s board held an informal meeting to discuss proposals to modify its surcharge policy. These are the additional interest charges the Fund charges countries that are indebted above their quota and that maintain that excess over time.

“They are considering several alternatives, some more convenient for the country than others, but there will be changes and we will pay a little less”former Argentine representative to the Fund, Héctor Torres, told Ámbito. Argentina is the main debtor of the IMF and holds 41% of the Special Drawing Rights that the organization has placed in the world.

Why is it important for Argentina? According to data from the consulting firm Suramericana VisiónArgentina pays the IMF a rate of around 7.68%, with surcharges representing around 300 basis points. This year, this implies payments of around US$2.366 billion, of which around US$765 million correspond to surcharges.

During his time at the Ministry of Economy, Martín Guzmán was particularly active on this issue. He met with representatives from different countries and put it on the agenda of the forums in which Argentina participated, such as the G20, which included it in its final declaration at one of its meetings.

Already outside the administration, the former minister and Nobel Prize winner Joseph Stiglitz together with the professor of Boston University, Kevin Gallagher, presented a concrete proposal to reform this point of the international financial architecture. This week, before the informal meeting of the board, they insisted on this initiative that includes a reduction in the surcharge rate, an increase in the debt threshold from which they are paid and a reduction in the basic rate of the IMF, they did so through a note published in Project Syndicate.

According to what Ámbito was able to find outthe agency would be willing to modify some of the points in question. Specifically: lower the base rate, reduce surcharges and raise the limits from which they are charged. For Argentina, this could result in savings of US$400 million annually, and, estimating a thirty-year life of surcharges, it could imply savings of around US$12 billion. The decision could be announced at the annual meeting of the board of governors in October, although some believe it could be announced even earlier.