By order of the president Alberto Fernandez, the Minister of Economy of the Nation Martin Guzman keeps permanently informed Cristina Kirchner on the progress of the negotiations with the International Monetary Fund (IMF).
The Vice President maintains a permanent dialogue with the official who heads the restructuring of the debt of US$44.000 millones that the country has with the international organization.
Martín Guzmán informs Cristina Kirchner minute by minute of the negotiation with the IMF
Since Saturday, a team from the Ministry of Economy and the Central Bank of the Argentine Republic (BCRA) has been in Washington to hold a series of meetings with the Fund’s staff. The owner of the portfolio Guzmán leads the meetings via zoom in order to reach a technical understanding that will allow the loan to be refinanced. The technical talks formally began this Monday 6.
That Cristina Kirchner approves the agreement with the Fund is not a minor detail. Even more so if it is remembered that just weeks ago the Vice President shared an extensive letter in which she referred to the negotiations with the IMF. “The pen always had it, has it and the President of the Nation will have it”Said the vice president, amid criticism of the media and the opposition.
Read more: Cristina Kirchner published a new letter and spoke of the negotiations with the IMF: “The pen always had the President”
However, in a section of the letter, he made it very clear what his position was: “It is a historical moment of extreme gravity and the definition to be adopted and approved, can become the most authentic and true stocks of which one has memory for him developing and the growth WITH SOCIAL INCLUSION of our country ”.
The toughest sectors of Kirchnerism question Guzmán by assuring that he seeks a fiscal adjustment to reach an understanding with the authorities of the organization.
In this sense, IMF bureaucrats say that the Government’s Multi-year Plan is a drawing. This is the program that will be included in the 2022 Budget and that will include the progress made in the negotiations with the Fund. They are variables that are usually in the Budgets, although analysts estimate that this time the plan will be explained at least until 2024.
The keys to this multi-year economic plan go through detailing:
- Speed of reduction of the fiscal deficit,
- The expected annual deceleration rate for inflation,
- The evolution of the exchange rate,
- GDP growth,
- The upside calculations in exports and imports
- Public and private consumption
- The evolution of wages are variable.
Begins technical talks with authorities of the International Monetary Fund (IMF)
The Minister of Economy Martin Guzman He promised President Alberto Fernández a quick agreement: the deadline is December 22. In this sense, there are still issues to be resolved and differences to be settled as a request from the authorities of the international organization to carry out a possible devaluation.
The objectives of the IMF in the negotiation with Argentina
As reported from the Casa Rosada to TN, the authorities of the Fund, which commands Kristalina Georgieva, will seek with the visit to close the technical aspects of:
- Memorandum of association: where the economic policy adjustments that the Government establishes are contained, it will make to overcome the problems that led it to request financial assistance and which also serve to guarantee that the country will be able to reimburse the resources to the IMF.
- Intention letter: where a more detailed explanation is set out in a “memorandum of understanding” between the IMF and the country and which must be approved by the agency’s executive board.
The Government seeks to achieve an extended facilities plan
The negotiation points to an extended facilities plan, 10 years with a little more than 4 grace, with what the country would start paying around 2026. Although it is pending whether or not there will be a reduction in the surcharge.
Before Christmas it is estimated the executive board will meet From the bottom. In that instance, not only the fate of the agreement can be defined with the country but will also analyze the local request and that the G20 collected to review the surcharges that it charges to countries such as Argentina.
For him December 22th, meanwhile, expires second installment of loan principal, for about US$1900 millones. From the Casa Rosada they ratified that it will be paid with the “pandemic funds” issued by the IMF last August.