In that line, a cable from the international agency Bloomberg, indicated that the International Monetary Fund called a virtual meeting for tomorrow, Friday, at 8 in the morning, Washington DC time, to inform the board of directors regarding the state of negotiations with Argentina, sources from the multilateral organization confided to Bloomberg.
The great debate at this time is the scheme proposed by the Government to lower the fiscal deficit versus the IMF proposal. From the Casa Rosada, they plan a fiscal adjustment of 2.5% of GDP for this year 2022 and, from there, a sequence of 2% for 2023, 1% for 2024, 0.5% for 2025 and just a zero deficit in 2026.
For its part, the multilateral credit organization demands from Martín Guzmán a more important cut for this current year, to reach the 2 deficit points: that is, it asks for an additional 0.5 percentage point cut, which would force to greater sacrifices.
By 2023, the IMF requests that the deficit be the equivalent of 1.4% of GDP. Starting in 2024, the IMF becomes more demanding. Instead of a progressive cut of 0.6 annual percentage points, it requires one of 0.7 and maintains this same requirement until 2025, the year in which it wants to reach a zero deficit.
The government intends a cut of 0.5 percentage points between 2022 and 2023 that affects as little as possible the availability of resources for the remainder of the mandate. And it offers a deficit of 1 percentage point of output in 2024 and then adopts the same previous sequence of an annual cut of half a percentage point.
The payment that must be made this Friday for US $ 731 million has not yet been confirmed by the Government. If President Alberto Fernández and the head of the Treasury, Martín Guzmán, consider that the negotiation instance bore some fruit, then the payment would be authorized with the commitment to continue the conversation.
