IMF and Argentina in constructive talks to strengthen loan program

As reported by the spokesperson for the International Monetary Fund (IMF), the talks between the agency and the Argentine government to strengthen the billion-dollar loan program that was established for Argentina are advancing constructively. They are part of the search by the cabinet of President Alberto Fernández to renegotiate the objectives established in the credit program while facing a large drop in foreign currency reserves, aggravated by the largest drought in the country’s history, which it cost him about $20 billion in revenue.

In this sense, after the face-to-face meetings in Washington last week, the negotiations are now taking place virtually through videoconferences led by Leonardo Madcur, Treasury chief adviser, and Gabriel Rubinstein, secretary of economic policy and number two. of the Ministry of Economy. Likewise, the IMF confirmed in a statement to two local media this week that the technical teams of the Argentine Ministry of Economy and the IMF “were working together” to assess and address the impact of the drought.

In this regard, the spokesperson for the credit agency told the news agency Noticias Argentinas that: “The technical staff continues to work with the Argentine authorities to strengthen the economic program agreed with the country in the context of the very severe drought. The exchanges between the authorities and the IMF team are progressing constructively.” This could suggest that Fund officials are accepting the Argentine government’s policy of intervening in foreign exchange markets and using scarce Central Bank reserves to support the value of the peso against the dollar.

He also announced that the statement issued by the IMF will sign a reformulation and reformulation of the agreement, instead of the difficult economic circumstances that Argentina is facing. Since the country will not be able to meet the objectives established for the accumulation of reserves and the fiscal deficit outlined in the agreement due to the drought.

On the other hand, both parties hope that the renegotiation will be finalized in the coming months, allowing the South American country to continue with its fiscal and monetary adjustment program as it tries to overcome the critical economic challenges that it faces today.

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