in government they admit that there is still “a way to go”

According to official sources close to the negotiations between Argentina and the IMF, “there is still some way to go on the agreement”. And they added: “we are on the way to the basis of the negotiation, but it is still missing”.

Argentina seeks to sign an extended facilities program to refinance a debt of US $ 47,000 million with the IMF that it accumulated between 2018 and 2019. With this program that Guzmán is requesting the country would not start repaying until 2026 official sources confirmed.

The details, released within the ruling party on the eve of Minister Martín Guzmán’s trip to Washington next week, differ from statements by Alberto Fernández last Monday when he said that “The agreement is closed, the rate cut has not yet been formalized”.

In the market, they believe that the agreement between Argentina and the IMF is still a long way off. Within the body at staff level, the same opinion weighs.

One of the questions agency officials and investors will raise with Argentina’s economic team in the United States is how they will lower the level of subsidies. Guzmán insists that his roadmap is the budget (he plans to cut subsidy spending to 1.5% of GDP). The minister will have to answer these questions during the tour, just after this week his Energy Secretary ratified that there should be no rate hikes above wages and that Maximum Kirchner and Sergio massa They are looking to review the budget.

Within government there is compliance for financial dollar regulations made this week “We believe there are conditions to support exchange rate policy. We will keep moving forward.”

Tour of the USA and the Georgieva situation

Guzmán will participate in the annual meetings of the IMF and the World Bank in Washington just as the director of the organization sympathizes with the shareholders of the IMF for the fate of his future: Wednesday, he defended himself before the executive board on the accusations to have favored China in the development of a classification.

There are versions according to which the head of the IMF could not continue at the front. In recent days, there has been some negative news about his role. Since Janet Yellen, the Secretary of the Treasury, did not answer the phone, due to the fact that the government of Joe biden believes that it does not continue and that Georgieva has accepted that Brazil make climate change targets more flexible.

“The situation with the staff is not changing at all”, they admit to the government on the impact of the negotiations that a possible exit of the number one of the IMF would have. “Corn Yes, this could have an impact on the advancement of the Purser’s theme. Georgieva’s role was fundamental in summoning the presidents to review this issue. “

Guzmán and Argentina want IMF to change surcharge policy which applies to countries that borrow above their quota. And they understand that the number one IMF plays a key role in this regard. The country hopes that next week, G-20 economics ministers will ratify the “empowering Georgieva” course. Argentina hopes this will translate into a request in the final G-20 communiqué in Rome for the IMF’s Executive Board to finally address the issue at the end of the year.

What if Georgieva doesn’t move from now on? “The vision on the base that the IMF leads to names matters more”, they explain to the government where they believe that “a financial institution” is not favorable to these reforms such as the reduction of surcharges and then seeks to control the organization to prevent this agenda. “Everyone is playing very hard.

In the government, they mention two reasons behind these pressures on Bulgarian. The first is that they believe more countries will have to renegotiate their debts in the future due to the pandemic and this works against investment funds which should take losses. More if the IMF reports on debt sustainability, as happened with Argentina in February 2020.

At second Instead, Georgieva is in favor of creating a fund to distribute recently issued SDRs that countries do not use.

Versions of FT and Bloomberg stress that the countries of Northern Europe, closer to austerity policies, would be more interested in another leadership within the body. “Georgieva arrived at the IMF with the support of the European Social Democrats”, they explain in Buenos Aires.

They also say that the underlying problem with the Georgieva controversy is that the Bulgarian favored China in a World Bank ranking and Washington does not forgive him for this action: Donald Trump made the dispute with the China’s state policy and the Democrats haven’t. they abandoned it.

“That Georgieva remains weak is not good. That it does not continue either. But most important is that it follows the basis of what Georgieva has worked beyond his luck,” they explain to the government.

Guzmán will be in Washington between Monday and Thursday. He will participate in meetings within the framework of the Annual meeting of the IMF and the G-20. He will hold meetings with the technical staff of the organization and bilateral meetings with his peers from other countries. Friday he will travel to New York. There you will see banks and investment funds that have Argentine dollar stocks and bonds.