MercoPress. South Atlantic News Agency

IMF and Argentina discussions “very fluid and constructive”, but no date for closing a new deal

Rice told a news briefing that a recent IMF mission to Buenos Aires, made “good progress” in defining the initial elements of Argentina’s economic reform plans

Negotiations between the International Monetary Fund and Argentina over a new IMF loan program are “very fluid and constructive,” with Argentine officials expected to come to Washington in the coming days for more talks, IMF spokesman Gerry Rice said on Thursday.

Rice told a regular news briefing that a recent IMF staff mission to Buenos Aires, made “good progress” in defining the initial elements of Argentina’s economic reform plans.

He said the two sides “share the view that tackling Argentina’s challenges will require a carefully balanced set of policies that foster stability, restore confidence, protect the most vulnerable people in Argentina and set the basis for sustainable and inclusive growth as Argentina battles its economic challenges, and of course, battles the pandemic.”

Rice added he'd characterize “our engagement as very fluid and constructive, and as part of these ongoing discussions a small team from the Argentine economy ministry is, indeed, coming to Washington, for meetings in the coming days”

“Discussions are ongoing, I don't have a precise timeline of any eventual agreement on an IMF supported program”. However Fund staff is keeping the executive board appraised for developments, and “this is true in the case of Argentina, but at this stage there's no date for a formal executive board meeting”.

Argentina is looking to replace its failing US$57 billion IMF program, launched in 2018 as the largest program in the Fund’s 75-year history. About US$45 billion in IMF funds have been disbursed under the program.

In early November, Buenos Aires launched talks with the IMF on a longer-term Extended Fund Facility after emerging from a sovereign debt default by restructuring almost US$65 billion in foreign currency bonds.

Rice said there was not a timeline yet for a potential agreement on an IMF-supported program for Argentina. Authorities in the countries were working to secure “broad political and social support” for a new economic plan.

Rice said the IMF’s current overall lending commitments are about US$ 280 billion out of about US$ 1 trillion in total lending resources. More than US$ 100 billion of that had been approved since the COVID-19 pandemic started early this year, including US$ 31 billion in emergency coronavirus financing for 78 countries.