The Government evaluates that the agreement reached with the International Monetary Fund (IMF) for the debt of 44 billion dollars taken by the management of Mauricio Macri allows dissipate uncertainty and project a “roadmap” for President Alberto Fernández to advance in the second tranche of management with a focus on growth.
The gradual reduction of the fiscal deficit, the advances to avoid currency jumps and the understanding for preserve labor and pension rights These were some of the keys to the final negotiation highlighted in the last hours by national officials, but also leaders, trade unionists and businessmen of different ideological biases.
“The deal takes us out of uncertainty and allows us to continue working, have a roadmap to deal with a good number of issues that make up the lives of Argentines. It allows us to stabilize ourselves and continue growing as we have been doing, despite all the obstacles we have,” he said this Saturday to Telam the spokesperson for the Presidency, Gabriela Ceruti.
The official stated that the Government would have “preferred not to have to be in this situation” with the international organization, but insisted on remembering that the administration of the Front of All (FdT) “inherited an infamous debt of 44,000 million dollars and had to take responsibility” and advance in the search for an agreement.
In this sense, in dialogue with this agency, he warned that, Compared to previous agreements between Argentina and the IMF, the understanding announced on Friday “does not compromise” the country’s sovereignty.
“This is a good agreement that does not compromise our sovereignty. For four years we will not have to make disbursements, which allows us to recover the GDP“, he founded.
And he explained: “We don’t celebrate, but we are relieved to think that we got out of this black cloud that prevented us from looking forward. Our responsibility is to govern and this principle of understanding allows us to begin to get out of this mess that Macri got us into; It is the beginning of the solution.
The announcement and the agreement
That line of reasoning was the one chosen by the President on Friday to announce the agreement with a recorded message from the Olivos residence: “We had a noose around our necks and now a way to go. We will be able to exercise our sovereignty and carry out our policy of growth, development and social justice.”
Among its central points, the agreement with the IMF a path of gradual reduction of the primary fiscal deficit, increased spending on infrastructure and science and technology and the continuity of targeted social programs, in order to sustain the economic recovery underway in the framework of the post-pandemic.
Negotiations between the Fund and the Argentine government were intense -and tough in several tranches- and were extended over 16 months, since they formally began at the end of August 2020, in one of the most complex moments of the coronavirus pandemic and once the swap with private creditors was completed. .
Among the fiscal goals agreed with the IMF, it is proposed that for the year 2022 a primary fiscal deficit of 2.5% of GDP is projected; for 2023 of 1.9%; and for 2024, 0.9%, as explained by the Minister of Economy, Martín Guzmán, at the press conference on Friday that he offered together with the Chief of Staff, Juan Manzur.
The Government considers that these guidelines are achievable without affecting the current growth rate of the economy.
In this line, and through social networks, Manzur He maintained that the understanding reached with the organization will allow “deepen the economic recovery that has already begun” by achieving “strengthening infrastructure works, expanding productive capacities to generate foreign exchange and consolidate the internal market.”
In the opposition, the realization of this understanding was highlighted as “a positive fact that gives predictability to the country”, while they prepare to debate its approval in Congress.
The head of state made it clear in his announcement that the Executive’s intention was ratify the agreement in Parliamentin what constitutes a clear counterpoint to the formula used by the macrismo in 2018 when it took on the debt with the IMF.
The National Table of Together for Change issued a statement entitled “On the principle of agreement with the IMF”, it stated that “Together for Change considers this first understanding with the International Monetary Fund (IMF) to be positive, thus avoiding a costly default”.
The statement was released after a zoom meeting in which Patricia Bullrich (PRO), Gerardo Morales (UCR) and Maximiliano Ferraro (CC) participated; former president Mauricio Macri, the governor of Mendoza Rodolfo Suárez and the Head of Government of the Autonomous City of Buenos Aires, Horacio Rodríguez Larreta.
The governor of Jujuy, Gerardo Moraleshighlighted on his Twitter social network account the agreement between the national government and the IMF for the renegotiation of the debt as “a first positive step,” noting that “it is good news for the country.”
Morales was one of the opposition governors who admitted the magnitude of the debt contracted by the Macri government in 2018 and sent an official from his government to the meeting led by the President and Guzmán, where the progress in the negotiation was analyzed. with the international organization.
Leaders of the ruling party and the provincial opposition also supported the understanding by emphasizing that “it does not condition” growth and allows to put an end to “the uncertainty” of going into default.
Nevertheless, Legislators from the ruling party and the opposition announced that during the parliamentary discussion the reasons for the origin of the debt that Argentina contracted with the IMF will be debated.
Next Tuesday, Fernández will begin an official tour of Russia and China, countries with which he will seek to deepen bilateral relations to finalize technical cooperation and investment agreements.
And this journey may mark the first step in a work and planning agenda focused on affirming economic recovery and the definitive exit from the coronavirus pandemic.