“Good progress” in Argentina/IMF negotiations for an Prolonged Fund Facility — Autopresse.eu
“Good progress” in Argentina/IMF negotiations for an Prolonged Fund Facility
”Good progress” has been made in components of a brand new program between the Worldwide Financial Fund and Argentina, IMF officers mentioned in an announcement on Friday. An IMF workforce visited Argentina to start discussions on repackaging some US$ 45 billion the nation owes the Fund.
”Good progress has been made in defining the preliminary components of such a program, and additional discussions are anticipated to proceed just about between the groups over the approaching weeks,” Julie Kozack, deputy director of the IMF’s Western Hemisphere Division, and Luis Cubeddu, mission chief for Argentina, mentioned in an announcement.
Argentina is on monitor for a 12% financial contraction this yr partly because of measures taken to fight the COVID-19 pandemic. Dwindling FX reserves have dragged its forex 25% decrease versus the greenback thus far this yr, however within the black promote it reaches simply half its official worth.
The IMF workforce “welcomed the authorities’ intention to request an Prolonged Fund Facility (EFF) association, and to underpin it with a broad political and social consensus,” mentioned the officers.
The EFF is a longer-term program that usually requires extra financial reforms than a standby settlement, which was Argentina’s earlier.
Earlier on Friday, Finance Minister Martin Guzman requested different members of the Group of 20 for his or her backing in Argentina’s IMF negotiations. He mentioned underneath a brand new program Argentina must guarantee it has “macroeconomic insurance policies to account for the fact the nation is going through” that embody methods to handle “social imbalances.”