The Minister of Economy, Sergio Massa, confirmed that an agreement was reached with the International Monetary Fund (IMF) to make some of the goals established in the program more flexible and “realistic”, due to the drought in the country and the costs of the war in Ukraine, and thus guarantee disbursements of more than US$ 19,000 million to meet the maturities of the debt with the agency scheduled for this year.
“The consensus with the IMF is that it is better to adapt the work schedule for the year from the beginning to provide predictability and not have to make wavers (apologies for forgiveness) during the year,” Massa said yesterday at noon in a statement after holding a meeting with IMF Managing Director Kristalina Georgieva in India.
The head of the Palacio de Hacienda stressed that the objective between both parties “is to be realistic and predictable so that the program is truly a computer and not a role in the air that is not fulfilled”.
The new objectives have not yet been specified: the country plans in the agreement to reduce the primary fiscal deficit from 2.5% of the Gross Domestic Product (GDP) in 2022 to 1.9% for this year, and a reduction of financial assistance from the Central Bank (BCRA) to the Treasury from 1% to 0.6%.
Meanwhile, after having exceeded a reserve accumulation goal of US$ 5,000 million for last year, for this year another US$ 4,800 million should be added since the biannual objective is US$ 9,800 million.
The head of the IMF stressed the “good progress” in the negotiations for the fourth revision of the program in a message published today on her Twitter account, after finishing her meeting with Massa.
“Very good discussion with @SergioMassa in the halls of #G20India about the new challenges facing EM (Emerging Markets) and Argentina. Good progress on the fourth review of the program and we hope to communicate its conclusion soon,” he said.
Very good discussion with @SergioMassa on the sidelines of the #G20India about the new challenges facing EMs and Argentina. Good progress is being made on the fourth review of 🇦🇷 program and we hope to communicate its conclusion soon. pic.twitter.com/rJoKToKY1i
—Kristalina Georgieva (@KGeorgieva) February 25, 2023