Full team at IMF Assembly to move final deal forward

The presence of the President of the Central Bank of the Argentine Republic (BCRA) at the Washington event must be read in this strategy. Pesce will be at IMF headquarters to discuss chapters on reserves, foreign exchange and monetary policy; fundamental, crucial and critical aspects of the last instances of discussion with the technical staff of the organization who is in charge of defining the content of the extended facilities.

For the first time since the agreement was discussed, Deputy Director for the Western Hemisphere Julie Kozac and Argentine Mission Chief Luis Cubeddu will listen to direct explanations from the official who will have to clarify, keep and enforce much of issues for which the success or failure of extended installations depends on time. North American and Venezuelan economists have already discussed the variables that depend on the plant with negotiators authorized by the country all this time. But now, at the IMF summit in Washington, they will be able to speak live with the person who will have to apply them. And that it has the mandate to close the fine and clear figures on the projections of reserves, emissions and exchange policy for the period 2022-2032, the term of the Extended Installations.

Conditions and objectives

Obviously, the Minister of the Economy Martín Guzmán and the local Ambassador to the IMF Sergio Chodos and the entire second line of the Ministry of the Economy will also travel. At least the officials who have something to talk to the people of Washington. The intention is clear.

Alberto Fernández himself gave the order to organize a delegation to the full headquarters of the Fund, with the aim of ratifying all the conditions and objectives to achieve the extended facilities that have already been agreed, accelerating those in which there is no as details and defining which ones they don’t agree with. These are said to be few in number, but important. And that they still deserve long days of face-to-face discussions.

Alberto Fernández’s order has a maxim: When those sent to Washington return to Buenos Aires, they must have the agreement defined and about to be presented within the governing coalition. And that only the points which go beyond the negotiation with the IMF staff remain to be defined, and that Argentina must discuss in forums which go beyond the IMF. Basically the decision that the board of directors of the organization should take, to reduce the interest rate that is applied; reducing it by 4.05% that the extended facilities should cost the country, to the lowest possible: 1.05%.

Georgieva

The trip to Washington will serve to assess, and possibly to confirm, the information reached Argentina on the stability of Kristalina Georgieva at the head of the IMF; knowing, as this journal progressed, that this is a difficult situation but not a terminal one. And that any internal investigation opened against the director general of the organization will not directly or indirectly affect the negotiations being carried out with Argentina to obtain the approval of an extended facility that regulates the debt for approximately 44,800 million US dollars taken during the time of Mauricio Macri.

If the investigations on the possible alterations of Chinese macroeconomic data in his time as director of the World Bank are progressing; These would require a long period of audits on Georgieva’s shares in this position, with which one would have to wait at least until the second quarter of 2022 for the IMF to come to a conclusion.

And then, just after having assessed the permanence of the official at the head of the Monetary Fund. In other words, and taking into account the insurmountable barrier of March 2022 as a deadline for signing an agreement between Argentina and the agency (on the 30th of this month, it would now be impossible to pay 4050 million US dollars in capital); negotiations will always be closed with Georgieva at the head of the IMF.