The Secretary of Finance, Pablo Quirno, celebrated the decision of the multilateral credit organization and noted that “Argentina obtains savings of 3.2 billion dollars and a reduction of almost 30% in the payment of charges and surcharges on the loan with the IMF.”
After learning of the decision of the Board of the International Monetary Fund (IMF) regarding the surcharges, the Secretary of Finance, Pablo Quirnowho was in charge of carrying out the negotiations for the flight attendants during the administration of Javier Milei, pointed out that “Argentina obtains savings of US$3.2 billion and a reduction of almost 30% in the payment of charges and surcharges on the loan with the IMF.”
Through social networks he commented that “After exhaustive work by the Ministry of Economy through the Ministry of Finance and our executive team at the IMF, carried out since the beginning of President Milei’s mandate that included installing the issue of the review of charges and surcharges in the G20 and the IMFC (International and Monetary Committee of the IMF) and after meetings with economic ministers of the G7 and countries affected by this policy, we managed to have the issue addressed today by the IMF Board.”
The IMF board approved reducing the base rate margin from 100 basis points to 60, reducing the rate of time-based surcharges from 100 basis points to 75 and increasing the threshold of the level at which surcharges are charged from 187, 50% of the quota to 300%.
The measure will come into force on November 1st of this year. “This change in policy means savings for Argentina of approximately 3.2 billion dollars, a 29.1% reduction in the payment of charges and surcharges for the entire current loan.explains Quirno.
The savings due to the measure adopted by the Fund ““It will be felt especially during the next 3 fiscal years where the reduction will be approximately 1.1 billion dollars”concludes the post.
It is worth remembering that last week the Secretary of Finance participated on behalf of the country in the meeting of the International and Monetary Committee of the IMF where the issue of surcharges and the proposal that was finally raised to the Board was discussed.
Surcharges are applied when the loan exceeds the limit equivalent to 187.5% of the country’s quota in the IMF. Initially, it is 200 points and applies to the debit balance that exceeds said limit. But if the debit balance continues to exceed more than 51 months for the loan that Argentina (EFF) has today, the surcharge increases another 100 points to 300 points. This was what was finally approved this Friday by the organization’s board of directors with the agreement of the representatives of the 190 countries.
Source: Ambito
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