The International Monetary Fund said on Thursday they were working “closely” with the Argentina team to “strengthen” the program in the face of an economic situation.challenging and complex But gave no indication of what they are discussing nor of the 10,000 million dollars that Minister Sergio Massa is looking for the Fund to anticipate it to alleviate the crisis.
In a press conference in Washington, the agency’s director of communications, Julia Kozack, He said they were continuing to “work with the Argentine authorities to address the difficult situation”. in virtual formBut avoid answering specific questions about the content of the negotiation.
Correspondents present in the agency’s newsroom and others virtually from Buenos Aires asked several questions: whether the discussions included a advance of disbursements planned for this year, if we were talking about a possible devaluationif they ensured that the Central Bank intervene in the foreign exchange market, if they were concerned about the possibility of a hyper inflation and if there is a date to conclude the negotiation.
Kozack merely replied that they were “working closely with the authorities as part of the program to address a very challenging and complex situation.”difficult economic situation aggravated by drought history that the country is going through at the moment”.
He explained that “the core of the conversations that are now taking place within the fifth revision It has to do with strengthening the authorities’ program and also taking into account the impact of the drought”. He said the “constructive” talks are taking place virtually and so on They were going to “communicate the results of these conversations,” with no further details.
“Everything on the Table”
A month ago, at the end of the IMF Assembly in Washington, Minister Sergio Massa and Fund number two, Gita Gopinath, agreed to review the original program signed by former minister Martín Guzmán because it couldn’t happen how it was. The severe drought plaguing the country was the reason given for “putting everything back on the table” as reserves fell, spending soared, and inflation soared.
the minister Massa is looking for a lifeguard who will allow him to oxygenate the economy before the STEP and at the same time give him a political support if he ran for president of the Frente de Todos. urgent need and for now the topic is postponed. The changes are expected to be announced in the framework of the fifth program review, which It should be ready by the end of May.
The Fund is willing to help Argentina, but despite reports in Buenos Aires, the organism gives no clues for now on how you will do it. Other program targets could be relaxed (they have already made reserves more flexible, but they could also do it even more), postponed deadlines and other maneuvers to alleviate the crisis.
But the minister’s best hope is that the Fund advances the programmed disbursements until the end of the year -which amount to about 10,000 million US dollars- to move more calmly and fresh money the pre-election months.
The Fund has not provided details on what they are trading. He wants Argentina’s economy not to explode, but the doubts about granting such a large sum of money at a time when there are high possibility that it will go away quickly in the heat of the election. Moreover, while the United States has given the green light to a change in the program, other members of the council are suspicious of Argentina’s continued requests.
Massa expected to resolve the issue in two weeks, but negotiations have been going on for almost a month and there doesn’t appear to be an imminent closure. While reserves continue to fall and negotiations continue, the minister specified in recent days some points agreed in the original program with the Fund: he implemented the restructuring of electricity subsidies and the official dollar rose with the pace of inflation.
But the discussions continue and there are no clues as to when and how they will end.
Washington (correspondent)
Source: Clarin
