Negotiations between Argentina and the International Monetary Fund (IMF) for the fourth review that will give the green light to the entry of US$ 5.4 billion to the country are advancing with “good progress”considered the organization, after the meeting held this morning by the Minister of Economy, Sergio Massa, and the head of that multilateral organization, Kristalina Georgieva, in India.
Within the framework of the G20 deliberations, Massa held a key meeting with the head of the IMF, at a time when the conclusion of the fourth review is being defined in Washington, and an Argentine mission is participating in that city to close the technical negotiations that will allow him to green light to the board of directors of the IMF to approve some US$ 5,400 million in March, which would go on to swell the reserves and meet the maturities with the agency.
At the end of the meeting between Massa and Georgieva, the head of the Fund announced on her Twitter account: “Very good discussion with @SergioMassa in the halls of #G20India about the new challenges facing EM (Emerging Markets) and Argentina. Good progress. in the fourth review of the program and we hope to communicate its conclusion soon,” he said.
The proposal that Massa made before the G20 and before Georgieva is to see how to measure the costs of the war in Ukraine for emerging countries
Massa was accompanied by the Secretary for International Economic and Financial Affairs and head of INDEC, Marco Lavagna, while Georgieva attended along with the deputy managing director, Gita Gopinath.
The proposal that Massa made before the G20 and before Georgieva is to see how to measure the costs of the war in Ukraine for emerging countries, and that they translate into concrete relief in the current programs of middle-income countries with the organizations, especially with the IMF.
In particular for Argentina, The Government will seek to negotiate with the Fund to make some of the goals established in the program more flexible for 2023, and thus guarantee disbursements of more than US$ 19,000 million that expire in this period to pay the debt of the program inherited during the Government of Mauricio Macri.
Massa approached Georgieva with the Argentine report released in India, in which it was verified that Argentina lost around US$ 5,000 million as an impact on the trade balance as a result of the War in Ukraine, and likewise the goals were met with the credit agency in 2022.
While, Georgieva raised the “imperative need to reinforce” the treatment of countries’ debts in the international financial architecture.
The Government will seek to negotiate with the Fund to make some of the goals established in the program more flexible for 2023, and thus guarantee disbursements of more than US$ 19,000 million
In parallel in Washington, the Vice Minister of Economy, Sergio Rubinstein; and the head of Advisors of the Palacio de Hacienda, Leonardo Madcur, carried out the technical negotiations throughout the week that ends this Saturday, before Massa’s meeting with Georgieva.
Meanwhile, Massa held bilateral meetings within the framework of the G20 meetings and other international organizations, to guarantee more disbursements, seek investment and reduce pressure on the dollar with currency swap projects with different countries.
One of Massa’s first meetings in the southern city of Bengaluru was with US Treasury Department Undersecretary for International Affairs Jay Shambaugh, with whom he discussed “the international financial situation” as well as “advances in the economic program and in the revision of the agreement with the IMF”, specified the Palacio de Hacienda.
Massa and Shambaugh also addressed the impact of the war between Russia and Ukraine and the drought in Argentina, two aspects that the Government considers should be taken into account in negotiations with the IMF due to their impact on fiscal accounts and income from foreign exchange.
In a statement, the Ministry of Economy indicated that other issues analyzed were “the need to find financing paths for middle-income countries and the impact on the global food security agenda and on the economies of the enormous drought that affects to Argentina and other countries”.
Massa also met with his counterparts from India, Italy, France, Germany and Brazil, with whom he discussed the potential of the investments in strategic sectors of the country, while analyzing the world economic context, compliance with the agreement with the IMF and the impact that the drought will have on the local economy.
Very good discussion with @SergioMassa on the sidelines of the #G20India about the new challenges facing EMs and Argentina. Good progress is being made on the fourth review of ?? program and we hope to communicate its conclusion soon. pic.twitter.com/rJoKToKY1i
—Kristalina Georgieva (@KGeorgieva) February 25, 2023
In another vein, he presented to his G20 peers Argentina’s proposal to review the IMF’s surcharge policy, called for putting the cost of the war in Ukraine on the agenda, and asked to recognize the figure of environmental creditors of developing countries in great biodiversity.
Lastly, he met with authorities from the World Bank, where he guaranteed the disbursement of US$ 1,000 million for the first semester.and also negotiated changes in the disbursement scheme that will save US$ 400 million in the financing of works for the country, in credits already approved for 2023 and 2024.
