The IMF and the Government close the agreement: what was negotiated and what the payment system will be like

In the last few hours, the Government confirmed that it had finally closed the agreement that is being carried out with the International Monetary Fund (IMF) to refinance a debt of 44 billion dollars.

Later, the organism ratified at a press conference that the negotiation reached its final stage, so now it only remains for Congress to debate the proposal so that the IMF and the Executive sign the program.

In principle, the parties would have reached an agreement at the technical personal level, as confirmed by the same IMFwith the aim of “providing Argentina with budgetary and balance of payments support”.

In addition, The agency confirmed that the proposal seeks for Argentina to have a “sustainable growth” to overcome the economic crisis it faces, so the “agreement is pragmatic and realistic.”

Press release from the Ministry of Economy.

For its part, the Ministry of Economy explained in its press release that the agreement is known as the Extended Service of the IMF “which includes 10 reviews that will be carried out quarterly for two and a half years.

In this sense, the ministry explained that “the first disbursement will be made after the approval of the program by the board of directors of the IMF, and the others after each revision, this, since the proposal is still subject to approval.

In addition, the ministry indicated that “the repayment period of each disbursement is 10 years with a grace period of 4 and a half years”, which means that the debt will begin to be paid and until 2026.

What are the key points in the agreement with the IMF

The Government and the organism They agreed to work together so that Argentina overcomes its economic crisis, so the negotiation points to the nation having greater growth.

The proposal needs 129 votes to be approved.

Also to reduce inflation rates, which “must be approached from a comprehensive approach”. It will also be a priority to accumulate greater reserves so that the “State has greater autonomy in the execution of public policies.”

Of course, the agreement is also aimed at reducing the fiscal deficit so that there is a greater recovery in economic activity, which will help to “strengthen the national currency.”

The parties reached a consensus on electricity and gas rates.

After finalizing the agreement, now all that remains is for the proposal to begin its debate in Congress next week, and if it is approved, the agreement could be closed before March 22, when the next payment is due.

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