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Negotiation with the IMF could include new funds

2020-10-27T14:02:58.694Z

The Argentine representative to the Fund, Sergio Chodos, explained that "there could be needs a little above" the agreement. They hope to close it early next year.



10/27/2020 10:43 AM

  • Clarín.com

  • Economy

Updated 10/27/2020 10:43 AM

The Argentine representative to the International Monetary Fund (IMF), Sergio Chodos, admitted that

"there could be needs a little above"

the agreement to be renegotiated between the multilateral organization and Argentina, which

owes

him

44,000 million dollars

.

"The government's position has always been to maintain the exposure and to renegotiate what is needed to pay. That is the intention," Chodos said in statements to radio

La Red

.

"It is also true that there may be needs a little higher, which could happen. But I cannot imagine something that is very exorbitant compared to before.

The intention is to go out, not to go back in

," added the official.

Was the official's response to the question of whether the new agreement could

include fresh money

or would only seek to renegotiate what is owed.

The Government of Alberto Fernández has been suffering a drop in international reserves and a widening of the exchange gap, which generates high expectations of an exchange rate jump.

Sergio Chodos, Argentine representative to the Fund, at Casa Rosada.

Photo: Federico López Claro

The Executive had the intention that the new agreement would serve to pay the maturities of the agreement signed by Mauricio Macri, which were originally about 57,000 million, but the

Fernández

government

, by rejecting the latest disbursements, reduced to about 44,000 million

.

Private analysts estimate that net international reserves are already at minimum levels and advise that new funds be incorporated to restore confidence in the Central Bank's ability to maneuver.

"

It is absolutely necessary that the agreement with the Fund be before July of next year

, and it is highly desirable that it be in April, March of next year," added Chodos, referring to the maturities to be paid to the IMF itself and for the negotiation of debt with the Paris Club.

"If we advance fast enough and we have a good program that understands Argentina's needs, it can be earlier," explained Chodos.

The negotiation of the new agreement will

begin the second week of November

.

Then it has to be approved by your board of directors.

And it will seek to reach political consensus in Argentina.

"We have put very clearly on the table the need for it to pass through the National Congress," Chodos reaffirmed.

With information from EFE.

JPE


Look also

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Santiago Cafiero: "Argentina is going to hit a huge blow as a result of the pandemic"

Source: clarin

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