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In 10 days, US$2.8 billion expire and the IMF has not yet confirmed when it will release funds to pay the debt

2024-01-22T00:56:25.550Z

Highlights: In 10 days, US$2.8 billion expire and the IMF has not yet confirmed when it will release funds to pay the debt. The Government expects US$4.7 billion to arrive at the end of the month, but the organization's board of directors has to approve it first. The Fund awaits progress on the omnibus law. The delays in confirming the meeting in Washington coincide with the challenges that the Government faces in controlling inflation that reached 211% annually. The first general strike called by the CGT for this Wednesday.


The Government expects US$4.7 billion to arrive at the end of the month. The organization's board of directors has to approve it first. The Fund awaits progress on the omnibus law.


While the Government awaits the arrival of a disbursement of US$ 4.7 billion to cover the maturities that fall at the end of the month, the International Monetary Fund has

not yet confirmed when the board of directors will meet

in Washington to authorize the transfer agreed almost two weeks ago with the Argentine authorities during the visit of a mission of the organization in Buenos Aires.

Support is

key in the roadmap of the Minister of Economy,

Luis Caputo: he has that money to pay the US$ 1,950 million that were postponed until January 31 and the April payments with the organization.

"I understand that they will make it to the end of the month

," they noted in the Economy Department, although the resources cannot be used to cover the US$830 million in interest that expires on February 1.

11 days ago, Caputo

revived the fallen program

and reached a technical agreement with the IMF, by which he committed to achieving a primary surplus of 2% of GDP and purchasing US$10 billion of reserves in 2024. In exchange for advancing In the adjustment plan, "Argentina would have access to nearly US$4.7 billion, subject to board approval," the Fund reported.

The dollars correspond in part to the disbursement that had been pending in November after the failure to meet goals in the management of Alberto Fernández and the Minister of Economy, Sergio Massa, and the rest is an additional.

Caputo acknowledged that

it was not "new money"

, but that it was going to be used to pay the CAF loan for US$900 million in December and the capital maturities until April.

During the forum in Davos, Switzerland, the head of the Fund, Kristalina Georgieva, highlighted last week the "good meeting" she had with Javier Milei in their first face-to-face meeting and revealed that they talked about the "deep economic and social challenges and decisive measures to reduce inflation", but without giving any signals about the call to the board of directors to approve the seventh review.

The delays in confirming the meeting in Washington

coincide with the challenges that the Government faces in controlling inflation that reached 211% annually, the renewed exchange pressures that brought the gap to 60% and the difficulties in approving the package of reforms contained in the DNU and the omnibus law, on the eve of the first general strike called by the CGT for this Wednesday.

Although Milei recently highlighted that the agreement with the Fund was "the fastest negotiation in history" and that its adjustment plan is "much deeper than what the IMF requested," the organization remains expectant about progress in Congress. .

The importance of this issue became evident in Davos, where Caputo

received dozens of questions about "economic reforms."

The legislative package is strategic for the government.

In its 664 articles, the first official project sent to Congress contains measures to reduce the deficit and comply with the Fund, such as the privatization of companies, the suspension of the retirement formula and the increase in withholdings, three points that are now the subject of strong tug-of-war in negotiations with allies and the opposition.

From the organization, they have already made it clear that they expect the Government to generate

"political support" to approve the law

due to its fiscal implications.

Other measures, such as cutting spending on subsidies, public works, social plans and transfers to provinces, do not depend on Congress.

But Caputo warned that, if the rule does not pass,

the adjustment will be harsher.

Source: clarin

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