Negotiations between Argentina and the IMF for the fourth revision of the program and for the easing of the reserve targetswhich will make it possible to raise US$ 5.4 billion during the current month of March, are developing positively and the announcement could be made on Monday.
In this way, Argentina managed to make the program’s reserve goals more flexible, based on a mobile calculation scheme, which will vary according to the evolution of the country’s exports.
Until this Saturday, the program of reserves targets for the year was closing with assumptions of a fall or increase in exports.
Within this framework, they hope to be able to announce it on Monday, a source with knowledge of the negotiations told Télam.
The Minister of Economy, Sergio Massa, indicated days ago that an agreement had been reached with the IMF to make some of the goals established in the program more flexible and “realistic”, due to the drought in the country and the costs of the war in Ukraine, and thus guarantee the disbursements of more than US$ 19,000 million to face the maturities of the debt with the organization scheduled for this year.
“The consensus with the IMF is that it is better to adapt the work schedule for the year from the beginning to provide predictability and not have to make waivers (apologies for forgiveness) during the year“Massa said last Saturday after the meeting with the managing director of the IMF, Kristalina Georgievain India, where he participated in a G20 meeting.
The head of the Palacio de Hacienda stressed that the objective between both parties “is to be realistic and predictable so that the program is really a computer and not a role in the air that is not fulfilled.”
The meeting between Minister Massa and the director of the IMF
Before, the head of the Fund had advanced the constructive tone of the negotiations for the new scheme: “Very good discussion with @SergioMassa on the margins of #G20India regarding the new challenges facing emerging markets and Argentina. Progress is being made doing in the fourth revision of the Argentina program and we hope to communicate its conclusion soon”, Georgieva communicated in a message on her Twitter account, also from India.
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
Likewise, he recalled that the objectives of the program with the Fund are “fiscal order, the accumulation of reserves and orderly monetary programming.”
In his meeting with Georgieva in the framework of the G20 summit, the official presented a report that maintains that the conflict caused a negative effect of US$ 4,940 million in Argentina’s trade balance, given the rise in international prices of fuels and the strong increase in the cost of freight for export, fundamentally.
“War and drought play a role in our economy and it is better to face it by setting achievable goals so as not to be correcting every quarter”added the minister in the statement.
Until now, the country had provided for in the agreement a reduction in the primary fiscal deficit from 2.5% of the Gross Domestic Product (GDP) in 2022 to 1.9% for this year, and a decrease in financial assistance from the Central Bank ( BCRA) to the Treasury from 1% to 0.6%.
Meanwhile, after having exceeded a reserve accumulation goal of US$ 5,000 million for last year, for this year another US$ 4,800 million should be added since the biannual objective is US$ 9,800 million.
So far this year, Argentina has already transferred to the IMF close to US$3.2 billion, which are part of the total maturities of US$19.85 billion that Argentina will have to deal with the organization during the current year, which will be paid with disbursements. of the current program.
The period under analysis is the fourth quarter of 2022, the year that Argentina closed with a primary deficit (not including debt services) equivalent to 2.4% of the Gross Domestic Product (GDP), with an overcompliance of one tenth, since the agreed goal was 2.5%, as reported by the Government last January.
