For the new loan, the IMF recalculates the interest Argentina must pay

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For the new loan, the IMF recalculates the interest Argentina must pay

Kristalina Georgieva, head of the International Monetary Fund. Photo by AFP

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The International Monetary Fund recalculates interest that Argentina should pay him this year the extraordinary disbursement of US $ 9,600 million which he did so that the Government would pay the due date at the end of March, and increase the reserves of the Central Bank.

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This is an additional US $ 225 million at US $ 900 million calculated at the end of February for 2022.

So, in total, until the end of the year there were US $ 1,125 million or 817.16 million Special Drawing Rights (SDR), the currency in which the IMF calculates the accounts. Each SDR is currently worth $ 1.3761. At the end of February, they were 653.67 million SDRs.

For that cost, in total today the debt to the IMF has risen to US $ 46,500 millionequivalent to 1,058% of the quota that Argentina has in the Fund, compared to US $ 39,550 million at the end of February.

This is another US $ 6,950 million because it includes part of US $ 9,600 million, Argentina paid maturities at the end of March.

On April 29, the US $ 705 million of the principal debt is mature, while the next interest payment is due on May 1 for US $ 370 million.

These numbers will be recalculated while the IMF makes future payments which Argentina will have to deal with following maturity. Approximately this year the interest account could be approximately US $ 1,900 million.

Until March 31, for extraordinary loans granted in 2018, Argentina paid the IMF US $ 4,403 million in interest, charges and surcharges.

According to the Congressional Budget Office (OPC) “the marginal interest rate accrued on Argentina’s debt to the IMF, which includes a variable component, it is currently at 4.25% per annum “.

The interest rate on IMF loans – explains the OPC – “consists of the base rate (basic rate of charge) and surcharges (surcharges), as appropriate when the debit balance exceeds certain limits. Additionally, there are commissions that apply to disbursements: the commitment commission (promise of payment) and the service charge (Service charge) ”.

So far, of the US $ 4,403 million paid, US $ 1,423 million corresponds to the principal amount of the general interest charged by the IMF for these loans. And at least US $ 2,980 million was paid for surcharges that the IMF applies when the debt exceeds a certain amount in relation to the country quota in the body international, and other charges, according to the calculations of consulting firm ACM.

A) Yes, 2 out of every 3 dollars interest corresponds to charges and surcharges.

These extra charges are what Argentina is taking – no success. that they will be repealeda position with the support of other countries and international economists, but a steady decline in the IMF


Source: Clarin

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