MercoPress. South Atlantic News Agency

US Ambassador insists on no special IMF treatment for Argentina

A meeting between Presidents Biden and Fernández would be “an opportunity for Argentina and the United States to come together and partner to feed and fuel the world,” Stanley said

The United States Ambassador to Buenos Aires Marc Stanley insisted there would be no special treatment for Argentina following President Alberto Fernández Government's request to cut down the International Monetary Fund (IMF) surcharge.

“An exception cannot be made for Argentina,” Stanley said regarding the measure which is common practice for the IMF when dealing with countries whose indebtedness greatly exceeds their quotas. The request had already been dismissed in 2021 by the IMF and by the US government.

Stanley insisted that “the Treasury Department considers that a deal is a deal.”

The ambassador also pointed out that “if surcharges are going to be eliminated, it has to be done for everyone.” He added that “you cannot make an exception for Argentina.”

“The question is whether the surcharges work as they were conceived or whether they are punitive as Argentina argues,” Stanley said.

According to the IMF's website, the loans it provides to member countries have two types of interest rates. The first is the cost of the Special Drawing Rights (SDR, the IMF's currency), which is determined by the market. To this is added the surcharge, which varies according to the amount and term of the loan. To calculate it, each country's quota within the organization is taken into account. This is the contribution that each member makes to the organization and is compared to the financing requested.

This technical term is, in fact, an additional cost of 200 basis points over the interest rate that the organization headed by Kristalina Georgieva charges Argentina -and other countries- for providing financing.

Stanley also addressed a possible future encounter between Presidents Fernández and Joseph Biden. “It is not yet 100% confirmed because of the respective agendas,” but it “will be announced soon.” The target date is July 25.

The Ambassador stressed that a meeting between Alberto Fernández and Biden would represent “an opportunity for Argentina and the United States to come together and partner to feed and fuel the world.”

The ambassador said that Argentina “has the resources, but needs some help with infrastructure and the United States can contribute.” He added that he is “sure” that European and African nations “need the fuel and food that Argentina can produce.”