Minister of Economy , Sergio Massa expects this week to get about 5,300 million dollars in foreign currencies, Among the payments to be discussed on the boards of directors of the International Monetary Fund (IMF) and the Inter-American Development Bank (IDB).
distance September closed with a record foreign exchange liquidation per soybean dollar valued at $8,123 millionwhich allowed the government to add international reserves of $7,646 millionCurrently Pending official approval at the IMF Board of the second review, Which will take place next Friday, as predicted by Massa last week.
Strictly speaking, The economy has already won the approval of part of the fund’s staff, led by Brazilian Ilan Goldfajn, that about 10 days ago he confirmed that Argentina had passed the technical test, for which the head of the agency, Kristalina Georgieva submitted the report to the Board of Directors for discussion, which, if approved, would result in immediate payment of US$4.1 billion. Which would lead to the inflation of international reserves.
The amount that the government paid to the IMF has already been repaid with a maturity of about $2,600 millionOr as it appears in the accounts of the central bank, with the official expectation that the discussion in the board of directors will flow unhindered into the money.
parallel, The Islamic Development Bank is preparing to approve new loans to the country totaling $1,200 million. Which will arrive during the last quarter, according to the entity’s commitment with the government last month during President Palacio de Hacienda’s tour to the United States.
Although the agreement was signed between Massa and Mauricio Claver Caronewho was recently dismissed from the Islamic Development Bank after discovering ethical violations during his role as head of the entity, In the environment of the Minister of Economy, they ruled out that this point would lead to complications in voting on new funds in favor of Argentina.
For its part, the Islamic Development Bank called for the appointment of a new president which will last about 45 days, and left Honduras and its executive vice president, Reina Irene Mejia Chacon, as interim president.
The change of authorities contributed to delaying the agenda of the Islamic Development Bank a little: at first, according to the statement issued by the entity last month, the new appropriations for the Argentine case were scheduled to be discussed at the end of September, and now it is expected that next Wednesday may be in the usual weekly session of the Board of Directors The Islamic Development Bank, or eventually in an extraordinary session which may be on October 6 or 7, the same day the Fund’s Board of Directors will vote on its disbursement.
Both organizations aim, in principle, to approve different projects for countries under preparation before developing The annual meeting of the International Monetary Fund and the World BankTo be held in the week of October 10 in Washington.
To demonstrate its commitment to Argentina, the Islamic Development Bank management will present the Special Development Financing Package (SDL) to the Board of Executive Directors in September with a total of US$ 700 million to finance the “Support Program for Improving Public Financial Management and Economic Recovery”, cIts initial disbursement date has also been set for the end of September, as announced by the Islamic Development Bank on September 6.
In addition, the Islamic Development Bank will provide a US$500 million loan (PBL) (policy-based lending), “The Public Policy Support Program for Sustainable and Resilient Growth in Argentina is an increase of US$200 million in budget support as a result of prioritizing Argentina’s programming,” the agency’s sources added.
Together, these loans will increase the Islamic Development Bank’s support to Argentina by $800 million. It is scheduled (and that is before Massa’s management is discontinued) to US$1,200 million in the fourth quarter of 2022.
The IDB, for its part, explained that the IDB’s budget support for Argentina was formulated in accordance with an existing agreement with the IMF (for the SDL project) and the IDB’s own assessment of the country’s macroeconomic conditions (for PBL loans). .
This support from the Islamic Development Bank, which includes a 180-degree change in the relationship the organization had with previous economic efforts, would mean $1,200 million in income for Argentina. of free availability between now and the end of the year, which will be used to boost reserves and, on the other hand, more money for investment credits for business in the Buenos Aires Province and tourism, among others that will complement some of the $3000 million as part of the 2022- plan 2023.
finally, The support of the Islamic Development Bank helped give more strength to the Argentine position in the technical review carried out by the Fund, before the meeting that Massa held with Georgieva in Washington, And before the meeting between the president Alberto Fernandez with the President of the International Monetary Fund In the framework of the annual assembly of the United Nations in New York.
(by Mara Lodonia) blame
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