Saturday, May 27, 2023

Government reached an agreement with the IMF for the debt

In this way, an understanding was reached and Argentina will make the payment of 731 million dollars due with the IMF today, as well as the 365 million that must be met next Tuesday.

Once the central issue of the fiscal path has been unlocked, different important aspects still remain to be defined, according to reports.

The political intervention of the United States was decisive to reach the agreement, say the sources. At a time when the world is experiencing moments of tension, particularly due to the confrontation between the West and Russia over the dispute in Ukraine, the White House considers it relevant to calm down the Latin American situation.

The announcement of the understandings with the IMF will be made by President Alberto Fernández in a speech that he will give to the country today at 10 a.m. from the Olivos residence sources from the Casa Rosada confirmed to Ambit.

After the president’s words, it is estimated that his speech will last about 15 minutes, the minister Martin Guzman and the head of the Cabinet of Ministers, Juan Manzur they will give a Press conference.

Along these lines, this medium was also able to know that there will be a communication from the IMF to the Board referring to the understandings reached so far between the Ministry of Economy and the technicians of the agency.

The Guzmán and Chodos negotiations with the staff of the Fund continued until late hours, according to official information.

Last night, according to information from Washington, a “staff level agreement” had not yet been reached, that is, an agreement with the members of the mission. The points still under discussion were deficit financing and the exchange gap

Since the last days of last week, the government began to harden its position in the face of the demands of the Fund’s staff. Some argue that these requirements go through the fiscal path, others instead, through monetary and exchange policies.

Moreover, although the rumor was growing that the Argentine government was not going to pay the IMF, which triggered the dollar and the country risk, some estimate that this was “only a negotiation strategy” and that no serious consideration was ever given to not paying.

The truth is that during this week the negotiations continued at a breakneck pace and with the active participation of the president Alberto Fernandez.

This Thursday the president released his entire agenda to dedicate himself fully to the issue and held various meetings throughout the day at the Casa Rosada. At the end of the afternoon, the head of the Chamber of Deputies, Sergio Massa and the Minister of Economy, Martin Guzman he was online the whole time.

In the midst of negotiations against the clock, expectations are growing in official circles that “the deal is closer and closer and it can be announced soon.

It should be remembered that this Tuesday the deputy director general of the IMF, Gita Ginopath, before a question from Ambit He stated that he hoped that there would be progress in the negotiations in the coming days.

World Nation News Desk
World Nation News Desk
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