June 7, 2023

Lakeview Gazette

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The International Monetary Fund confirmed positive discussions with Argentina, but did not specify whether it would advance the requested dollars.

The International Monetary Fund (IMF) said it would launch virtual talks in Argentina, given the difficult situation the country faces due to a drought that has left it with a significant loss of resources, but did not provide details on the possibility. Advance payments are preferred by the government.

Spokesperson of the organization Julie Kozak, After approving the second review, he indicated that virtual technology discussions focused on the goals of the first quarter, which should be discussed by the board of directors in June to trigger the next delivery to Argentina.

In this sense, he admitted that the project is being implemented in “difficult conditions” given the drought in the country, which, according to the government, has cost 18,000 million US dollars.

“Argentina has completed the fourth review of the program, which allowed for the immediate disbursement of $5.4 billion. We are working closely with the Argentine authorities on the background of the program, which faces a very challenging and complex situation.”

“On the status of the discussions, we are working very closely with the authorities in the context of the difficult economic situation that Argentina is facing, certainly worsened by the historic drought. The focus of the discussions now taking place for the Fifth Review is to strengthen the authorities’ plan, taking into account the impact of the drought.

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“There are ongoing discussions, they are constructive, they are virtual discussions, Argentina and we will communicate the results of these discussions in due course,” the official said.

Later, in the government, they noted that the possibility of getting an advance payment for the supplies is “advancing very well” and “negotiations are on the table.”

Kozak, who was in charge of negotiating the plan signed with the government in 2022, chose not to answer specific questions about Argentina, which referred to the possible early timing of the transfer, or the versions that reported the official’s devaluation request. The exchange rate accelerates. He also did not want to mention the high inflation the country has experienced, which had already been pointed to by staff as a source of high risk in previous reports.

On the other hand, he said, the IMF is encouraged considering that there is not enough support for the use of cryptocurrencies as currencies for legal use in a country, as expressed in the agreement signed by the government in 2022.

The country expects not only a transfer of USD 4,000 million by the end of June – in which the agreed new targets require the return of USD 2,700 million immediately after the blessing of the Board of Directors, but also a part of USD 10,000 million related to the July-December period.

The more surprising definition was ignored because Kozak explained that the number of funds was two, Geeta Gopinath, will travel to Chile and Brazil this month for different events, but will not come to Buenos Aires. Gopinath represents the US government, which is the multilateral institution’s largest shareholder.

IMF Vice-President Geeta Gopinath to visit region but not Argentina Reuters
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On the other hand, he is the managing director of the fund, Kristalina GeorgievaJoe Biden will attend the G7 finance ministers’ summit in Japan tomorrow and the day after, with the administration still unable to get approval from Congress in Washington. Central Government Debt Ceiling.

Minister Sergio Massa said this week: “We have an operation with the IMF with its disbursements and repayments. The fund proposes drought A game changer Also, within the same plan and with its framework, we seek to review the short, medium and long term objectives. Everything is on the table”.

Additionally, at the Amcham event, he was expected to seek to conclude negotiations involving foreign trade operations with other currencies, such as the payment of imports with the Chinese yuan or financing, before obtaining a new closed plan with the agency. Imported from Brazil.

Regarding the possibility of expecting offers, said the president of the Palacio de Hacienda. Front load It is a legally sanctioned tool. Everything is on the table. A central question is what is the central bank’s intervention capacity It is indivisible Because the political years become a dollar and create the idea of ​​protecting the portfolio.

Earlier, in a brief statement, the spokesperson of the company headed by the Bulgarian economist Kristalina Georgieva “Teams from the IMF and the Ministry of Economy continue to work constructively to strengthen the program supported by the fund in the context of very severe drought,” he highlighted.

In addition, he added, “Discussions are underway in practice and the committees are expected to hold several meetings this week.” “Negotiations are progressing constructively with a view to restructuring the program due to the impact of severe drought,” they added to the economy.

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On the other hand, the government in recent weeks, quietly, a Parallel negotiation He who follows him FMI To determine the two main questions: measure the level of non-compliance with the two main lines, VAT and RevenueAnd set goals Increase collection In two lines. For example, this year, the government must A drop of nearly three percentage points VAT Evasion.

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