The Government and the IMF would have reached an agreement on the increase in rates

Although the negotiations with the International Monetary Fund (IMF) had progressed positively, last week an obstacle was presented, all because a consensus on the increase in rates was not achieved.

This is because the Government foresees a 20% increase in the energy supply, while the organism requested an increase of at least 60% to reduce the fiscal deficit, which is one of the conditions of the IMF.

The Government and the IMF would have reached an agreement on the increase in rates — Electricity and gas rates will rise from March.

However, the Executive took it for granted that an increase of this type would not be possible, so, after a consensus with the IMF, it was established that “the increase in rates will always be below the salary increase.”

In this sense, according to the TN newspaper, the increase in gas and electricity bills would be 80% in relation to the salary increase, an increase that is even above the Government’s expectations.

The president formalizes today the new legislative period.

Despite this, this was one of the critical points to advance with the negotiation, which, according to the Executive, is in its final phase and could be signed in mid-March.

The IMF agreement will reach Congress this week

After the delays presented, the Minister of Economy, Martín Guzmán, promised the president that the proposal would be ready for today, within the framework of the Legislative Assembly.

The agreement with the IMF is expected to be signed this month.

However, the project has not yet been officially presented in parliament, which is expected to be defined this weekto be debated first in the Chamber of Deputies.

Then, the document will be sent to the Senate and later the official vote of the parliamentarians will be known, since a minimum of 129 votes are needed for the proposal to be approved.

Congress will decide if the proposal with the agency can move forward.

Meanwhile, within the framework of the inauguration of the Ordinary Sessions, members of the ruling party gathered outside Congress to support the president and the negotiations with the organism.

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