Economy and the IMF announce an agreement in principle and estimate to close it in the coming days

The International Monetary Fund (IMF) announced this Sunday a progress in negotiations with Argentina, noting that “the objectives and central parameters that will be the basis have been agreed for a “Staff Level Agreement” that is expected to be finalized in the next few days, to then move towards the review of the current program. In the facts, not yet an agreementIn the same statement, the IMF highlights that “these advances are expected to be finalized in the coming days”, to think only of an endorsement for the final review, but it could be graphed as “the base is there”.

The IMF spread a first message on its Twitter account, even with some notable error because one word was missing an s, indicating that “the teams from the Ministry of Economy and Central Bank of Argentina and the IMF staff the core aspects of the technical work of the next revision have been completed“.

There, what we mentioned at the beginning was added in a second post, that “the central objectives and parameters have been agreed, which will be the basis for a “Staff Level Agreement” that is expected to be finalized in the coming days. to then move towards the review of the Argentina program“, to close with the notice, and protocol, with the reiteration of objectives and specifying that with the agreement that is being negotiated “seeks consolidate the fiscal order and strengthen reserves recognizing the strong impact of the drought, the damage to exports and fiscal revenues from the country”.

From the Palacio de Hacienda they confirmed that “the terms of the agreement and the disbursement program for the second semester are closed”, although they did not specify amounts, and the technical agreement would be signed on Wednesday or Thursday.

In addition, from Economy they assured that there was a “strong support and involvement of the White House and the Congress of the United States to push the agreement.”

The announcement comes at a key moment. The negotiations were carried out against the clock and in view of the delayed payments due to principal and interest maturities on July 31 and August 1, respectively, which totaled 3.2 billion dollars.

In addition to the fact that on Monday the 31st of this month the IMF begins its summer recess and will stop its activities. For this reason, despite the fact that the “Staff Level Agreement” is expected to be signed between Wednesday or Thursday of next week, there is still the expectation of whether the board of directors of the international organization will deal with it.

News in development…

By Robert Collins

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