Argentina has requested a waiver from the IMF

Argentina requested a
waiver – A grace – before the International Monetary Fund (IMF) due to "lack of information" on budget targets after the last audit by the technical team of the multilateral organization on the accounts of Argentina a few weeks ago.

This request for deferral in the provision of tax data, as well as a possible change in quarterly targets, will be addressed next Friday at the meeting of the
board Fund in which it will also be decided whether or not to approve the
staff report the entire country and the payment of more than 10.8 billion US dollars, the largest
Stand By Accord with the country

"The third review under the confirmation agreement, request for waiver (applicability) of performance criteria, revision of funding guarantees and request for modification of performance criteria", has registered the Monetary Fund in its order of the day. April 5 on points to discuss about the situation in Argentina.

According to clarified at the Ministry of Finance at
THE NATION, Argentina's request is due to the "purely technical problems" and the "lack of some data" alleged by the agency on the fiscal objectives of the fourth quarter of 2018 (those that had to be examined, according to the third audit) and the first of 2019 He asked to see the IMF last February. A close friend of Minister Nicolás Dujovne clarified that some of these data were not available at the time of the IMF hearing in Buenos Aires and that a postponement was requested to present them.

Near the officials who are dealing with the IMF, they said the third audit should take place in March and end in April. This "delay" determined, he said, that the agency had also reviewed the first quarter data and not just the December 2018 figures. These financial figures as at March 31 are not yet available, the government should have asked for
waiver of technical applicabilitythey pointed from Hacienda.

However, they admitted that some quarterly budget targets could change due to "weak collection", but not the annual target, which establishes a zero deficit (which, strictly speaking, is a primary red from 0.5% of GDP). gross domestic product). The definition will be known next Friday with the publication of the
staff report by the
board the bottom.

The truth is that since the end of last year, the collection shows signs of weakness greater than that expected by the Treasury and the team of the Italian Roberto Cardarelli, despite the surplus displayed in the first semester. By case,
in March, collection rose 37.3% and was below inflation for the fifth consecutive month. For this month, even in the Treasury, the payment of salaries and allowances should be even more important in the public accounts (the government announced a 46% increase in the AUH in early March).

At the end of last month, there was already
doubts of economists on the tax front in the face of weak data on tax collection and in particular on the small amount collected for withholding taxes. The controversy grew with the IMF's latest press release, in which more adjustments were needed to the budget accounts, including a "greater restriction of spending".

"The authorities have reached their target of a 2018 primary deficit, demonstrating a determination to eliminate the vulnerability of the fiscal imbalance in Argentina, and achieving a zero primary deficit in 2019 will require a greater restraint on public spending. Argentina's debt to GDP takes a decisive downward trajectory It will be essential to maintain high-impact social spending programs in this year and beyond, "the IMF said in its press release. March 18.

The weakness of economic activity and high inflation have an impact. In this context, we strongly support the efforts of the authorities to mitigate the social impact of the necessary stabilization policies, including the recently announced increases in social spending (which will adjust to the program through an increase in badistance expenses). social level of 0.2 to 0.3% of GDP), "he said.