2024-10-11 20:26:00
International Monetary Fund (IMF)Reduce the surcharges countries pay to obtain loans exceed their quota allowed and Argentina saves $3,200 This is achieved directly in addition to the additional 30% cost reduction included in the current plan.
“In a challenging global environment and a period of high interest rates, Our members have agreed on a comprehensive package to significantly reduce borrowing costswhile safeguarding the IMF’s financial capacity to support countries in need,” Kristalina Georgieva, the organization’s managing director, said in a statement.
Finance Minister Pablo Quirno noted that Argentina “Savings of $3.2 billion, reducing fee and surcharge payments on current IMF loans by nearly 29.1%.”. By 2024, this amount will be approximately $450 million.
What does the IMF statement that Argentina celebrates mean?
- Base interest rate spread reduced from 100 basis points to 60 basis points
- The time-based surcharge rate is reduced from 100 basis points to 75 basis points.
- The surcharge collection threshold was increased from 187.50% of the quota to 300%.
Kilnow pointed out that “This policy change will take effect on November 1”.
The secretary of state emphasized that “especially over the next three fiscal years, we will feel the cost savings, which will be reduced by approximately $1.1 billion.”
Georgieva pointed out “While fees and surcharges have been significantly reduced, they remain an important part of the IMF’s credit cooperation and risk management framework, All members contribute and everyone can benefit from support when needed.
The head of the organization added: “Together these fees and surcharges cover credit intermediation costs, help build reserves to protect against financial risks, and provide incentives for prudent lending.”
“This provides a solid financial foundation that allows the IMF to provide important balance of payments support on affordable terms to member countries when they need it most,” Georgieva said.
Finally he said “This reform helps ensure that the IMF can continue to serve our members in a changing world”.
Politically, the measure has the support of the US government and the G7, Because this is a help to Ukraine, to defend its territory from Russian invasion.
Government Negotiations with Martin Guzman
The International Monetary Fund’s decision also Sparking conflict between current economic team officials and former Economy Secretary Martín Guzmanretaining the medal he received for promoting this decision.
Quirno tried to corner the profits by insisting on review by the IMF Board of Governors, saying “Following detailed work by the executive teams of the Ministry of Economy, Finance and the International Monetary FundPresident Javier Milley has been working on this since he took office, including raising the issue of a review of fees and surcharges in the G20 and IMFC (International Monetary Committee of the International Monetary Fund), and conducting a seven-nation meeting following meetings with economic ministers. Group and countries affected by this policy.
It’s worth clarifying, however, that this claim began several years ago and was driven by former minister Guzmán and Nobel laureate Joseph Stiglitz, who formed a group of at least 150 economists. A huge group of families.
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