MercoPress. South Atlantic News Agency

IMF likely to review interest rates charged to Argentina... in due time

“We listen to the members and then we look for a way that makes sense,” Georgieva said.

International Monetary Fund (IMF) Director Kristalina Georgieva Wednesday admitted the rates Argentina is currently paying will be subject to review, at the request of the South American country.

“We listen to the members and then we look for a way that makes sense and where there is consensus,” Georgieva said. She added the rates are to be on the board's agenda and open for examination “when the Fund carries out a periodic review” of the cost of its loan to borrowers.

“This is the time when these types of issues can be discussed,” Georgieva told reporters in the framework of the organization's biannual meetings. “As always, we listen to the members and then we look for a way that makes sense and where there is consensus,” she added.

Argentine Economy Martín Guzmán supported a proposal within the framework of the G24 to carry out “a review of the Policy on Access Limits and Interest Rate Surcharges in IMF loan programs.”

Guzmán said in a statement that “in the context of the pandemic, an immediate suspension of surcharges, while policies are reviewed, would help countries recover and should be considered.”

The minister had expressed his will that an agreement could be reached before May but, while President Alberto Fernández has taken a calmer approach, saying he did not want to rush things.

In the footsteps of Argentina's economic policies and according to banking sources in the US, the IMF is contemplating a proposal of one-time additional taxes to individuals and companies to reduce inequality and generate a flow of funding for each government's anti-covid-19 efforts. Assets, incomes and inheritance are among the items to fall under taxation wherever the IMF guidelines are followed.