FMI to decide agreement with Argentina
The International Monetary Fund will conduct a vote to decide whether 45,000 million dollars of financing with Argentina is reprogrammed
The Directory of the International Monetary Fund (IMF) will meet to vote if it finally gives a green light to the agreement reached with Argentina for the deployment of a program of 45,000 million dollars that would refinance the loan that the Agency granted the country in 2018.
A month ago, the IMF based in Washington and Argentine authorities reached an agreement at the level of technical personnel on economic and financial policies supported by an extended service agreement of the 30-month fund.
After this principle of agreement, the Agency announced on Saturday an postponement of debt maturities worth more than 2,000 million dollars that Argentina had to pay on March 21 and 22. These will expire on March 31.
The team headed by Julie Kozack, Deputy Director of the Department of the Western Hemisphere, and Luis Cubeddu, Head of Mission for Argentina, then explained that the objective of the program is to provide the South American economy budgetary and balance of payments support. They seek to address the economic challenges “pressing in the country and improve the perspectives of all Argentines, through the implementation of measures designed to promote the growth and protection of essential social programs.”
Among the objectives of the program, it seeks to address high persistent inflation through a multiple strategy, which involves a reduction in monetary financing of the fiscal deficit and a new framework for monetary policy. Their purpose is the generating positive interest rates to support internal financing, which together with other measures, will help promote a continuous reduction of inflation over time.
Source: dpa
