The most important data (but there are also other data not far from it) is that President Alberto Fernandez and Martín Guzmán once again put together all of their proposals, and according to what Umpito learned from a high-ranking source in the Argentine government, these initiatives seem to have gained, in the final hours, a certain relative weight within the discussion.
to be precise, They see in the government that the G20 statement could have undermined the intransigence of the credit agency’s bureaucracy towards Argentina and yesterday could start to notice part of this qualitative change. This would explain the long negotiation time yesterday in Rome, that is, the many cases with a view to moving the agreement forward.
Yesterday, after participating in the COP26 summit in Glasgow, Scotland, the President spoke with Minister Guzmán who is still in Rome today, on the phone. The head of the economic portfolio closed the day of negotiations with Julie CusackThe Vice President of the Western Hemisphere shared his satisfaction with the intensity of the joint work.
As expected Domain During yesterday afternoon, it was almost 11 hours later also followed by the Minister of Strategic Affairs Gustavo Pelez, and to zoom in, the Head of Mission of Argentina, Luis Cupido and the Director of the Southern Cone to the IMF, Sergio Chodos. . Each of them had their own technical part throughout the day and participated in different conversations.
Although the nature of the meeting was artistic, Blaise’s participation gave it a different political framework.
Approval of Georgieva
Apart from the new activity that the long conversation between Argentina and the organization could take, part of the dynamics that occurred yesterday, was surprisingly able to incorporate several points on the working table that had long been discussed between the two parties but that, perhaps not taken into account by the Fund To model the new agreement or at least to extend the negotiations for as long as necessary.
The government believes that it must show, first of all, that it does not want to default. For this, it paid the agency $2.47 billion in the year and yesterday made a new payment. An additional $1.9 billion remains for the next few weeks.
“If we were to default, we wouldn’t pay everything we were paying,” a source said. However, there is no security in the government Kristalina Georgieva He wants to completely soften the harshness of his position, so that this media outlet can find out, granting a waiver or “exemption” for non-fulfillment of the payment due in March, which takes the pressure off not only the plight of the government, but also the IMF itself.
In the same way, a standstill agreement can work, an agreement between a debtor and a creditor in which the debtor agrees not to default and the creditors are obligated not to take action or demand payments to the debtor, until the completion of the negotiation and restructuring process.
It should be noted that the G20 countries also asked the International Monetary Fund last Sunday to create a new Resilience and Sustainability Fund to “provide affordable financing” in the long term to low- and middle-income countries. According to Ámbito, the government has made progress and has already secured Georgieva’s approval so that if the new 10-year Extended Fund Facility is successful, it includes a clause allowing the country, when the opportunity exists, to change lines of credit, to one with lower costs and a longer term, such as “flexibility” . This condition is called “pari-passu”, and what is new is that Argentina can benefit.
So far, throughout the negotiations with the IMF, Argentina has sought to realize the Extended Facility Program, that is, a 10-year loan repayment period and terms related to structural reforms. Following the G20’s request for new scaffolding, the odds are growing to continue negotiating a better agreement. Also, the chance to take more time without going into repayment.