2023-07-23 15:34:43
Argentina and the International Monetary Fund (IMF) reached a technical agreement. According to a joint statement between the fund’s staff and the Economy portfolio, the document will seek to boost the country’s economy amid agricultural challenges. After intense negotiations, the teams from the Ministry of Economy and the Central Bank of Argentina, together with the IMF Staff, rThe central parameters for advancing in the review of the Argentine program and obtaining vital disbursements for the second half of the year were resolved.
Through joint communication on social networks, Both parties confirmed that they have completed “the core aspects of the technical work of the next revision.” The Staff Level Agreement (technical agreement) is expected to be finalized in the coming days, paving the way for a comprehensive review of Argentina’s economic program.
1/ The teams from the Ministry of Economy and the Central Bank of Argentina ???????? and the IMF staff have completed the core aspects of the technical work of the next review. pic.twitter.com/1BcV7p3cIN
— FMI (@FMInoticias) July 23, 2023
The Argentine economy had to experience unfavorable conditions due to the drought that seriously affected agricultural exports, reducing income by nearly US$20,000 million. In this context and as stated, The agreement aims to consolidate fiscal order and strengthen reserves, recognizing the impact of the drought on the country’s tax revenues and the fiscal deficit.
In addition, sources from the ministry led by Massa stated that will allow the release of some US$4,000 million in disbursements scheduled for the end of June, which were not issued due to Argentina’s defaults with the goals agreed before the impact of the drought.
This becomes a relief for the country’s economy, especially when payments for some US$ 2,700 million must be made at the end of the month, andn a moment of external fragility.
To address the challenges in the agricultural sector, the Ministry of Economy will announce a series of measures. Among them, a differential dollar will be established for the regional economies and corn in exports, with an estimated value of around $350. This measure seeks to provide support to key sectors of the economy and encourage exports.
In addition, it will apply PAIS tax on imports of luxury services and products, with exceptions for products destined for the basic food basket and energy-related sectors. Also, those who export and import and pay for their imports with exports will not be subject to VAT or the PAIS tax.
The steps taken by the delegation of the Ministry of Economy in the United States, as well as the intervention of the White House and the Congress of the United States, They were decisive in reaching an understanding.
With the technical agreement reached, Massa will seek to lay the foundations for a future comprehensive reformulation. For the government, this represents a crucial step for the economy in the midst of economic and agricultural challenges. It is expected that on Wednesday or Thursday of this week the details of the understanding will be known, giving a boost to the economic future of the country.
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