The board of directors of the International Monetary Fund (IMF) is discussing at the organization’s headquarters the third review of the program that it maintains with the country for US$45,000 million, whose final approval will pave the way for a disbursement of US$6,000 million before the end of the year .
At a technical level, the revision is approved, so the Government is already expecting the entry of US$6,000 million to increase the reserves at the end of the year and comply with the IMF maturities, the next December 21 and 22, of US$ 2,680 million.
In early December, the IMF and the Argentine economic team reached an agreement at the level of technical personnel on the third review of the program within the Expanded Service Agreement of the Fund (SAF), which paved the way for an upcoming disbursement of US$ 6,000 million, the agency reported on that occasion in a statement, in the who announced the holding of a board meeting in December on this matter.
This paved the way for a forthcoming disbursement of US$ 6,000 million, the agency reported on that occasion in a statement, in which it also announced the holding of the board meeting that will take place this Thursday.
The IMF reported, on that occasion, that “The review focused on assessing recent progress in program implementation and reaching understandings on policies to further strengthen macroeconomic stability in a more challenging context.”
They specified that “It was agreed that the key objectives of the program, particularly those related to the primary fiscal deficit and net international reserves, would remain unchanged for the remainder of 2022 and 2023 to continue to anchor policymaking and credibility.”
In addition, they pointed out that “the need for policies to be adapted as necessary in the event that external and internal risks materialize” was discussed.
“Despite the challenges, also a consequence of the war in Ukraine, all quantitative performance targets were met by the end of September 2022, including the primary fiscal deficit due to strong spending controls and actions to improve the targeting of subsidies. and social assistance”, highlighted the technicians of the Fund.
The maturity schedule with the IMF for 2023
Regarding maturities with the IMF for 2023, Argentina will have to face payments for a total of US$ 18,800 million.
Within the framework of the agreement signed with the agency last March, that debt was refinanced so that Argentina will receive some US$16.8 billion from the IMF, to pay the maturities that were inherited from the management of Mauricio Macri.
That is to say, Argentina will have to pay in the net account some 2000 million dollars to the IMF, in the middle of an electoral year.
Secondly, Argentina sought to insist on the policy of overcharging IMF credits, since it considers that it could save some 1000 million dollars annually.
In the last board meeting that dealt with the issue, the Monetary Fund did not advance with any change in this regard, and despite the insistence of the G20 at the last presidential summit in Bali, Indonesia.
Last week the IMF issued a statement in this regard, in which it stated that, as a result of the meetings on this issue, there will be no changes to it, at least for the moment.
To cushion the refusal, the agency added that “most directors were open to exploring possible options to provide temporary relief from surcharges, and some supported a change in policy.”
The IMF justified the application of surcharges on the grounds that “they are primarily a component of the Fund’s risk management framework, but also contribute to the accumulation of precautionary balances.”