The draft agreement with the IMF comes to light: what the Government is committed to

After several weeks of waiting, a draft of what would be the Government’s final agreement with the International Monetary Fund (IMF).

Although the document on IMF is not the definitive one, it even dates back to February 12, it was possible to learn about some of the main issues that will be addressed in the negotiation with the organism.

The draft agreement with the IMF comes to light: what the Government is committed to — The Government undertakes to initiate a pension reform plan.

In this sense, the agreement with the IMF It would include a series of budgetary adjustments argued under the concept of “rationalization of spending”, in addition to some legislative modifications.

Among them, the foreign exchange criminal law, money laundering, defense of competition and a regime of final beneficiaries. The Government is also committed to promoting investments for agribusiness, hydrocarbons and automobiles.

The pre-agreement includes points that will be worked on jointly with the World Bank, the IDB and the IMF.

Further, the draft indicates under the category “other pending expenses”, that the Government will seek to recover resourceswith which the Social Security System could present modifications.

In turn, the document speaks of “rationalizing expenses” in the provinces and public companies, so “limits to discretionary transfers to provinces and state companies” would be established.

The Government seeks to strengthen the reserves of the BCRA.

Also, as the Executive had already mentioned, energy subsidies will be reduced and a real estate revaluation will be arranged. Besides, it will seek to add 5,800 million dollars in 2022 for the Central Bank.

Congress will evaluate the agreement with the IMF in the coming days

The official document managed by the Minister of Economy, Martín Guzmán with the bottomexpects to be presented this Friday in the Chamber of Deputies.

The ruling party vote appears to be unpredictable.

This, so that there is a first debate and, later, on March 1 in the Legislative Assembly, the proposal is discussed in the plenary session of Congress.

Nevertheless, It will be precisely the fine print of the agreement that will be the most critical point of the discussionsince the deputies assure that they must first know what the Government is committing to in order to refinance the debt.

The proposal must be reviewed by the IMF board before closing.

Thus, if everything goes in favor of the Government, the closing of the agreement could be processed before March 22, when the next payment to the IMF is due.

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