Argentina is on track to receive an outlay of about $5.4 billion next month as a result of Argentina exceeding its reserve, fiscal and Treasury financial targets. This was announced by official sources of the Ministry of Economy who are participating in the meeting of finance ministers and presidents of central banks at the G-20 in Bangalore, India.
An official statement from the IMF will confirm the advance on Monday. Then, formally, on March 22, the transfer of money to strengthen the reserves will be approved. On that date, the organization’s board of directors will discuss the Argentine case and formally approve the sending of the SDRs (the currency issued by the IMF and converted into dollars). The money would arrive in a Treasury account at the BCRA a few days later.
In parallel with the fourth quarter review procedures and the excessive achievement of objectives, Economy sources admitted that at this moment they are “thinking about the 2023 program based on the impact of the drought and the war in Ukraine” and that for this “together at the IMF we try to agree on a change in the annual program targets”.
Massa in India and part of his team in Washington, together with the IMF, are analyzing the numbers to present a new program to the Council and thus avoid Argentina requesting quarterly waivers as a result of its economy’s reserve accumulation process does not take place at the pace set for 2022. Drought and war have diminished the country’s export capacity.
Official sources have clarified this the only annual targets that would be adjusted would be those of the reserves.
“In tax matters and monetary financing The idea is to support the goals and not generate uncertainty. But in the build-up of reserves it seems sensible to adapt the program to the new reality.”
On Saturday at noon in India, the minister had a meeting with Kristalina Georgieva. According to the head of the organization, it was “a very positive discussion” and underlined that “the fourth review of the program with Argentina is proceeding at a good pace and we hope to communicate its conclusion soon”.
The talks, which according to the CEO of the International Monetary Fund also discussed “the new challenges facing emerging markets and Argentina” took place as part of the G20 meeting of finance ministers and central bank governors , in India. The meeting was also attended by the deputy director general of the Fund, Gita Gopinath, and the secretary for international economic and financial affairs and head of INDEC, Marco Lavagna.
Source: Clarin
