2024-01-08 19:44:00
The Minister of Economy, Luis Caputo, and the Chief of Staff, Nicolas Possemet this Monday followingnoon, at the Casa Rosada, with the mission of the International Monetary Fundheaded by Luis Cubeddu and Ashvin Ahujawho arrived in the country last week and held a series of meetings with officials from the Central Bank and the Treasury Palace throughout the weekend.
During the day, the head of the Treasury Palace gave details of the tax cut announced by the President of the Nation, Javier Milei; in what, for the ruling party, is the “strong, credible stabilization plan with political support” that the organization had requestedas described in December by Julie Kozack, Director of Communications at the IMF.
Through a “waiver” (sorry) for the failure to meet goals established in the Extended Facilities Agreement On the part of the Alberto Fernández administration, the government has the objective of renegotiate and revive the program with the organization, which is “virtually down.”
With this, search generate a new payment schedule, with the objective that Argentina can comply with its debt commitments in 2024, thus avoiding the ‘default’y achieve a disbursement, in the medium term, of US$3.3 billionpending shipment from November 2023.
However, from the different official offices there is a strong climate of secrecy regarding not only the quote in question, but also to the approaches given between Friday and Sunday.
This may have to do with the mode of operation usual in the IMF, which prefers keep a low profile while listening and observing the numbers presented by the Executive and close the diagnosis which will be shared, once the mission is completed, with the entire board in Washingtonprior to the final decision, which might take a couple of weeks.
The Government seeks the help of the IMF to pay maturities and sustain the plan
What is the payment schedule to the IMF in 2024?
According to the current scheme, which might be altered following the negotiations, this year the Argentina will have to pay almost US$7.5 billion, distributed as follows:
- US$1.95 billion in January
- US$810 million in February
- US$1,922 million in April
- US$743 million in May
- US$641 million in July
- US$727 million in August
- US$716 million in November
Looking ahead to the first month of the year, the Government decided unify and postponein an operation known as ‘Bundle’, payment of debt maturities by the end of Januarywaiting for the definitions following the meetings with the members of the organization.
The calendar originally contemplated a cancellation on January 9 for US$1.3 billion and another on the 16th, for US$650 million. Both finally They will be paid in the hours before the beginning of February.
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