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Montevideo, August 8th 2022 - 20:19 UTC

 

 

IMF Board unanimously approves Argentina deal

Friday, March 25th 2022 - 16:09 UTC
Full article 3 comments
Illan Goldfajn will be responsible for Argentina's compliance with the agreement Illan Goldfajn will be responsible for Argentina's compliance with the agreement

The International Monetary Fund's board of directors Friday approved unanimously the latest US$ 45-billion program signed with Argentina, with which the South American country has avoided default.

In addition to the agreement, the IMF board approved the immediate disbursement of US$ 9.65 billion and also gave the administration of President Alberto Fernández the chance to pay the next two maturities without defaulting.

The program, which is the twenty-second for Argentina since it joined the IMF in 1956, replaces the one signed in 2018 under then-President Mauricio Macri. At US$ 57 billion, it was the largest in the IMF's history.

Friday's voting meant the end to little over a year of negotiations, which included ith the approval of the Extended Facilities agreement reached between February 2021 and March 2022.

In the near future, Argentina and the IMF will have 12 years of a direct relationship. During the first two and a half years, the country will have to comply with 10 reviews every three months.

The Israeli-Brazilian Illan Goldfajn, IMF Managing Director for the Western Hemisphere, will be the person responsible for Argentina's compliance with the agreement, and the one whose signature will be required to deem a stage complete.

Argentina will make payments between 2026 and 2034, thus gaining 4 and a half years without sacrificing whatever little assets may be left in its now-revitalized coffers.

The Board's approval allowed an immediate disbursement of US$ 9.8 billion, which will be allocated to pay extremely short-term maturities and to strengthen the Central Bank's reserves, which would now surpass US$ 43 billion, their highest amount in six months..

The IMF also extended until March 31, the deadline for Argentina to pay the interest and principal originally due last Tuesday 22, for a total amount of close to US$ 2.8 billion, it was announced.

Both Houses of Argentina's Congress had greenlighted the IMF deal brokered by Economy Minister Martín Guzmán earlier this month

Categories: Economy, Politics, Argentina.

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  • Falklands-Free

    Going to be interesting to see if they honour the interest payment due by 31st march.
    Then what's to bet a couple years down the line they will again seek a renewed agreement because they still cant afford the already modified one.
    It is amazing how a system can give huge amounts of money to poor paying countries yet if an individual were to get into arrears with their mortgage the bank would foreclose on them with no questions asked.
    Maybe you have to be a failed state to suck money out of the rich.
    Argentina certainly falls into that category nicely.

    Mar 26th, 2022 - 11:32 am +1
  • Jo Bloggs

    Here we go again…

    Mar 25th, 2022 - 10:49 pm 0
  • imoyaro

    More Kabuki theater, with lots of greasepaint...

    Mar 26th, 2022 - 05:52 am 0
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