The government of Javier Milei and representatives of International Monetary Fund will meet in the City of Buenos Aires in view of seal the renegotiation of the agreement for the debt of US$45,000 that the country maintains with the organization.
As sources related to the Executive confirmed to PERFIL, the series of meetings with the technical teams of the BCRA and the Ministry of Economy will begin this Friday and could extend throughout the weekend.
While, for its part, the meeting headed by the Chief of Staff, Nicolas Posseand the Minister of Economy, Luis Caputowho had already spoken with members of the entity on the trip to Washington, United States, made at the end of Novemberin the prelude to the inauguration of the libertarian, It would initially take place on Monday, with a time and place to be defined.
In Buenos Aires, and on behalf of the IMF, they are already willing to say ‘present’ the Deputy Director of the Department of the Western Hemisphere, Luis Cubedduand the Head of the Mission for Argentina, Ashvin Ahuja.
Refloating the program, currently down due to not having met the goals agreed upon during Alberto Fernández’s mandate, is one of the main objectives of the libertarian administration in the short term. This, in order to achieve a new payment schedule, avoid default and achieve a disbursement of almost US$3,000 million.
This money, in the midst of a drain on reserves, I was going to join in November, after the sixth review of the program. However, the failure of the previous management to meet its objectives, with Sergio Massa as head of the Palacio de Hacienda, caused a virtual fall.
Now, in this series of technical meetings, Milei’s economic team will look for a waiver (sorry) due to this situation, with a response from the board that could take up to a couple of weeks, a scenario that led to the urgency of holding the meetings in the first hours of 2024.
Although, to have that ‘green light’you must present a “strong, credible stabilization plan with political support”as requested Julie Kozack, Director of Communications IMF, in a press conference held in December.
IMF: the Government postpones the January maturities while it defines how to renegotiate the agreement
However, everything would seem to indicate that the recent measures announcedlike Decree 70/2023 and the Omnibus Law project, are going down that path, considering that, in these almost 30 initial days of mandate, the organization applauded three provisions of the Executive: the devaluation of the exchange rate, the liberalization of prices and the announcement of a strong fiscal adjustment for 2024.
“These initial actions aim to significantly improve public finances in a way that protects the most vulnerable of society and to strengthen the exchange rate regime. Its decisive application will contribute to stabilizing the economy and laying the foundations for more sustainable growth led by the private sector,” the IMF said in an official statement, published in mid-December.
What is the payment schedule to the IMF in 2024?
According to the current scheme, which could be altered after the negotiations, this year the Argentina will have to pay almost US$7.5 billion, distributed as follows:
- US$1.95 billion in January
- US$810 million in February
- US$1,922 million in April
- US$743 million in May
- US$641 million in July
- US$727 million in August
- US$716 million in November
Looking ahead to the first month of the year, the Government decided unify and postponein an operation, known as ‘Bundle’, by the end of January, payment of debt maturitiesawaiting the arrival of the agency’s officials to the country.
The calendar originally contemplated a cancellation on January 9 for US$1.3 billion and another on the 16th, for US$650 million. Both commitments finally They will be paid in the hours before the beginning of February.
News in development…