The IMF assured that they are working “intensively” to reach an agreement but did not give dates

The International Monetary Fund (IMF) granted this Thursday that the teams from Argentina and the organization “are working intensely“to reach an understanding between the parties that allow reformulate the existing program and complete the fifth revision, although he did not give a precise date on when it would happen.

julie krozakspokesperson for the agency, said that the IMF is focused on “helping the authorities to face a very complex and challenging situation“.

What are the requirements of the International Monetary Fund to close a new agreement with Argentina

And among other things, highlight that in the negotiations “andThe focus of these discussions are alternatives to strengthen the program of the authorities” emphasize that “the focus of these discussions are alternatives to strengthen the program of the authorities.

While recognizing the impact of the drought on the economy, and this includes reviewing policies to save stability, strengthen reserve accumulation, improve fiscal sustainability, and save the most vulnerable“, Koszack said at a press conference.

Massa’s entourage travels this Wednesday to close the agreement with the IMF

In addition, The voice denied that the agency had received a letter from China -member of the board- in which, supposedly, the institution was urged to reach an understanding with Argentina, given that, otherwise, it would help the country to finance the maturities that it must face until the end of the year.

When consulted by a version that circulated in the media of a letter sent to the Fund’s board by the director of China in the organization, zhengxim zhang, in which he would have implied that if the negotiations with Argentina continue to be delayed, China would be willing to enable Argentina the second tranche of the swap and thus be able to pay the maturities, Kozack denied it. He just said that “our understanding is that there is no such letter”.

Besides, He did not specify the deadlines for the negotiations either. and, asked if they could finish before the US summer break, which begins in August, Kozack said that “the teams are working hard to get the fifth review completed.

Likewise, he reiterated that the aim is to “preserve stability, improve the accumulation of reserves and fiscal sustainability.”

Despite the different inquiries made by different media outlets, Kozack avoided giving details on the economic topics being discussed.

Payments, at the end of July

It is worth remembering that, as anticipated by PROFILE, Argentina will unify the payments of the maturities that apply in July with the International Monetary Fund by the end of the current month, in order to sustain the negotiation with the multilateral credit organization without the urgency of having to part with new reserves of the already very weakened coffers of the Central bank.

total, During July, Argentina should pay a little more than USD2,600 million. Between June and July, the accumulated maturities is in the order of USD 5,300 millionalmost USD1.3 billion above the USD4 billion that the original agreement stipulated for IMF disbursements.

Negotiations between the IMF and Argentina to reformulate the program signed in March 2022 last almost three months.

In another order, and as stated by Télam, Kozack specified that the owner of the Fund, Kristalina Georgieva will attend the G20 finance ministers summit next week, to be held in India on July 17 and 18, and in which the participation of Economy Minister Sergio Massa has not yet been confirmed.

LR