Imf Agreement With Argentina

« The IMF cannot defeat a country with which it signed an agreement two years ago and end up in arrears, » he said. International Monetary Fund staff and the Argentine authorities have reached agreement on a series of enhanced economic policies that will underpin the 36-month stand by agreement (SBA) approved on 20 June 2018. Subject to approval by the IMF Executive Board, the revised agreement charges IMF financing, increases available resources by $19 billion by the end of 2019, and brings the total amount available under the program to $57.1 billion by 2021. The resources available under the program would no longer be treated as a precautionary measure and the authorities intend to use IMF funds for budget support. IMF Managing Director Christine Lagarde made the following statement on the staff-level deal: it was former conservative President Mauricio Macri who negotiated Argentina`s $56 billion deal with the IMF – the largest loan in the Fund`s history. Some $44 billion has been delivered to date. The terms of the original agreement stipulated that it was to be repaid by 2023, but that`s unlikely: the government has already said it needs more time. « To develop, Argentina must free itself from this suffocating debt, » Guzman said, looking at lawmakers, union leaders and IMF representatives. With the renegotiation of private debt nearing completion, President Alberto Fernandez is focusing his attention on the IMF, with the country wanting to reschedule more than $44 billion in loans with its priority creditor and replace the standby credit line signed by the previous government in 2018. Argentina could ask for the talks to begin, a formal step that is needed to begin negotiations, local media said as early as this month. Argentina is the only country that owes the most money to the International Monetary Fund. Ironically, Argentina is probably the only country that is home to a population that passionately hates the IMF.

It is still the ideological homeland of Che Guevara and neighbor Eduardo Galeano, author of the South American post-colonial treatise « The Open Veins of Latin America ». No one hates the IMF as much as these boys. If Argentina is able to confirm IMF support, it will be an important precedent for the rest of the discussions, Pezzarini said. « I don`t think any bondholder will accept a restructuring if you don`t already have an agreement with the Fund, » she said. The challenges will be to find the formula that makes repayment feasible in a struggling economy. The two sides are more ideologically different than ever, with heterodox management of market interventions and deficit monetization, says Siobhan Morden, head of Latin American Fixed Income at Amherst Pierpont Securities in New York. « There is no urgency with a significant payment of US$1.9 billion due in September 2021 and the worst payments of US$19 billion $US in 2022 and an additional $US 19 billion in 2023, » she said. « The crisis affecting our country today was aggravated by a quick agreement with the IMF in 2018 that was not sustainable, » Argentine Economy Minister Martin Guzman and Central Bank Director Miguel Angel Pesce wrote in a letter to IMF boss Kristalina Georgieva on Wednesday. (Reports by Hugh Bronstein; Jonathan Oatis Cup) « Argentina has developed a strengthened economic plan aimed at strengthening confidence and stabilizing the economy.

The new plan focuses on a fiscal policy aimed at strengthening its fiscal position and having a sustainable and properly financed budget, a strong monetary policy focused on reducing inflation, a variable exchange rate policy without intervention. BUENOS AIRES, 27 years old. Aug (Reuters) – Argentina is seeking a new deal with the International Monetary Fund to repay just about $44 billion it received in 2018 under a loan deal in an unfortunately solvency state, the country`s representative in the Fund said on Thursday. . . .