The Government evaluates the request for a new loan to the IMF

Seeking some relief from the inflation crisis, reserve shortage and large fiscal deficit, the government analyzes the request a new loan to the International Monetary Fund which is designed to help countries to ensure sustainable growthaccording to Reuters news agency.

It is a loan from Confidence for resilience and sustainability (RTD), a special fund to the agency, which could be formally requested starting from October.

The issue could be exacerbated in the tour that the Minister of Economy, Sergio Massa, will carry out in early September, through Washington and New York.

Although the agenda is not yet defined, the minister, who will make his debut in this capital as a storm pilot for the country’s economy, tries to meet the head of the Fund, Kristalina Georgieva, and the other officials of the agency who they are responsible for Argentina and the region.

In his talks, Massa will also discuss the Fund’s new $ 44 billion Extended Facilities loan revision in September, which will consider the country’s performance through the end of June.

It did not transcend what would be the amount the government would try to ask from that special fund. After consultation with ClarioneIMF declined to comment and the Ministry of Economy did not immediately respond on the matter.

According to the organization on its website, RTD “will help vulnerable low- and lower-middle-income countries build resilience to external shocks and ensure sustainable growth, contributing to the stability of its long-term balance of payments. It will complement the IMF’s existing lending toolkit by providing affordable long-term finance to address long-term challenges, including climate change and pandemic preparedness. “

It offers maturities of up to 20 years with a grace period of 10 years.

According to the rules of the RTD trust, “access to loans will be determined on a case-by-case basis, based on the depth of the reforms and the sustainability of the debt”.

Funding to countries will be capped at 150% of their IMF share or 1,000 million special drawing rights ($ 1,302 million), whichever is less. For Argentina it would be the second.

RTD aims to distribute $ 45 billion or more. One of the countries that formally requested access to RTD was Bangladesh at the end of July.

The IMF board of directors approved the launch of RTD in April and the start of lending is scheduled for October. When is the Fund’s annual meeting held? Massa and his team are also expected to come to this international meeting which is held annually in Washington.

Massa is committed to achieving the objectives of the Extended Structures Agreement with the Fund, which include a reduction in the budget deficit of 2.5% of GDP, a decrease in the monetary question and an increase in reserves, something economists estimate will be very difficult to achieve, especially in the last quarter. In this context, any new background would be more than welcome.