The board of the International Monetary Fund (IMF) approved the revision of goals for the fourth quarter of 2022 of the program with Argentina.
“The Executive Board of the International Monetary Fund (IMF) today completed the fourth review of the expanded agreement within the framework of the Expanded Facility of the Fund (EFF) for Argentina. The decision of the Board allows an immediate disbursement of US$ 5,400 million (SDR 4 billion), bringing total disbursements under the agreement to around US$ 28.9 billion,” the agency’s press release said.
With this, Argentina faced the automatic payment of March maturities, regarding US$ 2,700 million, and the remaining balance will make it possible to pay the quotas that expire in April, with which there will be temporarily some US$ 2.6 billion in reserves.
The IMF technical staff had already evaluated compliance with the goals of the last quarter of last year and indicated that Reserve, fiscal and monetary targets were met.
With US$ 1,000 million in reserves, Massa seeks to avoid the devaluation
Spokesmen for the Ministry of Economy confirmed that the board agreed to postpone Argentina’s payments to the IMF.
The easing of the reserve goal has as its counterpart the commitment of the Argentine government to apply “stronger policies” as called for by the IMF and speed up the reduction of energy subsidies, especially for higher-income sectors.
Argentina has the support of the United States, the country with the greatest weight in the decisions of the IMF board, following the meeting between US President Joe Biden and Secretary of the Treasury, Janet Yellen, with Argentine President Alberto Fernández, Minister Sergio Massa and other officials at the White House .
Dating in the United States
Massa also held a meeting with the number two of the IMF, Gita Gopinath, in which he promised to take measures to increase the accumulation of reserves in the Central Bank.
The Economy Minister announced in Washington measures aimed at strengthening reserves, such as expand the export scheme with the “agro dollar”which would be extended in addition to soybeans to other products of the regional economies and which will seek to simplify the various exchange rates.
In Economy they hope to obtain another US$ 3,000 million from international organizations this year to strengthen the reserves of the Central Bank.
LM CP
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