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The IMF gives Argentina more time to pay US$2.7 billion

2023-03-21T17:34:15.966Z


The agency confirmed that it will be canceled on March 31, when the Board of Directors meets to approve a new disbursement.


The Government

managed to kick off the payment schedule with the IMF

and gained 10 days, valuable time amid the loss of reserves and rumors about eventual measures.

Yes, the US$2.7 billion that expired this Monday and Tuesday

will only be paid on March 31,

after the meeting of the agency's board of directors, in which the approval of a disbursement of US$5.3 billion is expected.

With these funds, Argentina will pay the maturities.

The Fund confirmed the change of plans on Tuesday after the Ministry of Economy reported it on Monday.

"We can confirm that the Argentine authorities have informed the IMF that they will combine their repayment obligations due on March 21 and 22 into a single repurchase due on March 31, 2023, for a total amount equivalent to about SDR 2,014 million," a spokesperson for the agency told

Clarín

.

The Government had evaluated the possibility of using the few reserves it has on hand to settle the maturities, but finally

got the nod

to postpone payments for a few days.

"The government's decision, which does not require the approval of the IMF Executive Board, is consistent with IMF rules and with Argentina keeping up to date with its payments to the Fund," they added from Washington.

At this time, the Ministry of Economy continues to recalculate its next steps to

contain the renewed exchange pressures

in a context of high inflation, which hits the demand for pesos.

In the last hours, the rumor of a possible exchange rate split

resurfaced ,

which generated crosses with the Casa Rosada.

"It is not evaluated for now," said sources from the Economy, where

they blame the presidential adviser Antonio Aracre for the speculations.

Close to Sergio Massa, they await the relaxation of the reserve goal of at least US$ 2,000 million.

The modification was agreed to in order to meet the objective of the first quarter, since in the year

the Central Bank sold more than US$ 2,200 million.

But now the quarterly fiscal goal

is also in the spotlight

.

The collapse of the collection from exports deteriorated the public accounts in February and left that commitment on the verge of non-compliance.

"In any case, the main concern does not lie in meeting the goal, but in the

meager stock of net reserves

(the real firepower of the BCRA to intervene in the exchange market) and the unfortunate expectations of the flows of the next months. This last puts in check not only the sustainability of the crawling peg, but also the stability of the economic policy scheme in which the Government is anchored," said Ecolatina.


The lack of dollars continues to be one of the main concerns for Massa's team.

At the beginning of the week, the Central Bank sold US$ 261 million, the highest daily sale since last February 15.

The lawsuit included

purchases by YPF for US$20 million to cancel debt

, debt payments from the province of Santa Fe for US$26 million and LNG imports for US$262 million. 

In view of the drainage in recent weeks, the Government received disbursements of US$285 million from a loan from the Andean Development Corporation (CAF) and US$395 million from the Central American Bank for Economic Integration (CABEI).

In the next few days, on the other hand, a new tranche of US$ 1,000 million of free availability of the Chinese swap

would be activated

for the payment of imports and in April the US$ 5,000 million committed would be completed.

"In this way, the Government obtains financing from international credit organizations and bilateral financing to finance the constant loss of reserves faced by the Central Bank. In this scenario, the reissue of the soybean dollar in the coming months is very feasible as a mechanism to strengthen the ailing reserves of the Central Bank," said a Delphos report.


NE

look too

Due to the fall in reserves, the rumor of an exchange rate unfolding grows, although the Economy denies it

Cash with liquidity is consolidated above $400 and they assure that there is room for it to continue rising

Source: clarin

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