The government has confirmed that it will apply for a loan to the IMF from the resilience fund

Seeking some relief from the inflation crisis, reserve shortage and large fiscal deficit, the government confirmed it will request it. a resilience fund to the International Monetary Fund (IMF) which is designed to help countries to ensure sustainable growth. The confirmation came from the mouth of the presidential spokesman, Gabriela Cerruti, who clarified that “it is not a new loan”.

As Clarin had anticipated, 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 Government’s objective is to strengthen, in this way, Central Bank reserves.

“What they are talking about is the famous DEC (from the resilience fund) which is actually something that Argentina has asked for, promoted, pushed and is taking shape, What does that have to do with those funds they are it can redistribute among middle-income countries and that they need it, “the official said. And he added:” This is something that Argentina has been promoting since last year, from the G20 in Rome. “

Although the amount that will be disbursed by the agency was not disclosed, Cerruti insisted that this is not a new “loan” from the IMF, but rather a “A new international financing mechanism” for countries that need it.

It did not transcend what would be the amount the government would try to ask from that special fund. After consultation with Clarionefrom the IMF 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 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.

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.

Outline the mass agenda in front of the IMF

The question – put on the table by the then Minister of Economy, Martín Guzmán – will be on the agenda of the new head of the TreasurySergio Massa, who will travel to Washington and New York in early September.

Although the agenda has not yet been defined, the Minister of Economy, Sergio Massa – 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 body who are responsible for Argentina and the region.

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

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”.

Financing of the Resilience Fund

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.

The IMF board approved the launch of RTD in April and the lending is scheduled to start in October. When is the Fund’s annual meeting held? Massa and his team should also 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.

YN