IMF board determines whether to support the agreement with Argentina – Business and Politics

The Board of Directors of the International Monetary Fund is meeting, today, in Washington, United States, to analyze the approval of the agreement reached with Argentina to refinance the debt of 45 thousand million dollars obtained in 2018, during the government of the Argentine Republic. Mauricio Macri.

The perspective is that after Parliament approves the bill sent by the Executive, the directors of the international credit organization will ratify the understanding reached by the staff with the Argentine delegation headed by the Minister of Economy, Martin Guzman.

Last Tuesday, before tomorrow’s meeting, the head of the International Monetary Fund said, Kristalina GeorgievHold a virtual meeting with the president Alberto Fernandez and with the chief of the Palacio de Hacienda.

The deadlines

Approval of the directory will allow access to a file First disbursement of $9800 million immediatelywhich will pay off very short maturities and strengthen the central bank’s reserves.

In this way, the International Monetary Fund extended until Thursday March 31 The period during which Argentina pays interest and principal originally due on Monday 21 and Tuesday 22nd, in a total amount close to $2.8 billion.

After the said meeting this week, the head of state said he had a “constructive” conversation with him. GeorgievaBoth stressed the importance of the Extended Facilities Program, which the Council will deal with tomorrow.

For her part, the president of the organization confirmed that Fernandez conveyed to her the commitment of Argentina To make your economic program a success.The agency mentioned Telephone.

More understandings

The communication between the head of the fund and the manager of the fund took place around the same time as the minister’s meeting Guzman which was held on that day in the French capital with the president of the Paris Club, Emmanuel MullenUnder which they agreed to extend the debt renegotiation period with the Creditor Countries Forum until June 30.

The Paris Club had given Argentina in June 2021 until March 31, 2022, to renegotiate a debt of $2,000 million, pending a program first with the International Monetary Fund.

The Forum took into account the delays in reaching an agreement with the IMF, on the one hand, and the good preparation of the government and staff with technical understanding for Postponing the “time bridge” for another quarter, Until June 2022, to trigger a debt renegotiation, under which Argentina requested a reduction in the interest cost from 9% of the old agreement signed in 2014, and to have a 3-year grace period.

This new understanding also includes financial guarantees from the Paris Club to support the extended thirty-month Facility Program, allowing Argentina to secure the financial sources specified in the agreement with the International Monetary Fund.

As a result, with the impending approval of the Agency’s Board of Directors of the Extended Facility AgreementArgentina and the Paris Club pledged to complete the final amendment process to the agreement specified in the “Joint Declaration for 2014” prior to June 30 of the current year.