IMF project agreement with Argentina after December

p2-copy.jpg

The organization published yesterday morning on its website, the opening of the directory dedicated to the case of Argentina on Friday 5, as well as an exclusive agenda. The board, which is attended by all the representatives of the contributing countries, is responsible for approving (or rejecting) Cardarelli's March 15th recommendation on the progress of the agreement with Argentina and then allowing the first disbursement. . of the year for Argentina. On that day, the Italian economist signed an open letter stating that "the services of the IMF and the Argentinian authorities had reached an agreement on the third review of the economic program supported by the Stand-By Arrangement. 39, approval of the board of directors, Argentina would have access to about 10 870 million US dollars. "The rating has never been in doubt. However, yesterday morning, at the announcement of the IMF; Fears have circulated about how the body wrote the memo of the meeting. It was mentioned that the council would discuss a "waiver" requested by Argentina, which would have provoked rumors about failures to set targets. With the hours it became clear that in fact, and because of the inherent changes in the IMF program (which had advanced the first mission of the year in February), Argentina owed some data budget and monetary for the first quarter, which she then sent to Washington. These data should then be included in the document that council will discuss on Friday. As was later clarified in Buenos Aires, Argentina "requested a waiver (application) and the staff (of the IMF) recommended to the board to approve it, because at the end of the 39, some budget data were not available at the end of March ", clarifying that at no point were the agreed objectives compromised. In the same vein, the IMF clarified that Argentina's preliminary data indicated that the country would respect the agreed fiscal targets to obtain US $ 56.3 billion, including a disbursement of US $ 10.3 billion. US dollars is expected to take place in April. .870 million. The agency itself indicated that the waiver request was due to the fact that the country had requested "a simple question of availability of certain data" and not any type of non-compliance with the objectives agreed with the IMF. Even some of the missing data (including some monetary data for March and cumulative inflation for the first quarter) will not be available for Friday because INDEC has not finished processing them yet. However, this will not jeopardize the approval of the general objectives. In any case, they will be evaluated at the next agreed revision for June of this year. This means that from Friday, April 12 to Sunday, April 14, all smiles will be visible between the President of the Central Bank, Guido Sandleris, and the Minister of Finance, Nicholas Dujovne, when they will be in Washington with Lagarde, Cardarelli and General Manager from the western hemisphere, the Mexican Alejandro Werner. It will be when IMF host countries will receive Argentine visitors as their best students in the world. At the spring summit, the agency will open its doors in the meantime these days to its Washington headquarters. Argentine officials will ratify the zero deficit monetary target for this year and reflect on IMF support for maintaining and deepening social plans. It will also be an opportunity for the parties to start now seriously to work on the next step, the booth stand-by signed in September of last year and applied since October 2018. Without hurry, but so energetic, the IMF wants to start defining the future of the agreement with Argentina, knowing that, as Cardarelli himself said, it is a program of stabilization of the exchange rate and not of a long-term program. The IMF is preparing an offer to improve the support, transforming it into one of the extensive facilities. This is based on an extension of payment terms, from 4.5 to 10 years, instead of 3.5 / 5 years of waiting time. In return, it will be necessary to commit to implementing structural reforms with political agreement in the legislature, such as labor and social security, provided that they are also long-lasting changes. term.