IMF: what the ‘hard’ countries are asking from Argentina to close the agreement

Some call it the “hardest” of the IMF and others simply present themselves as “pragmatic.” The truth is that the small bloc of countries that make up the IMF’s current board represents the biggest headache for the government of Alberto Fernndez when agreeing to a new program with the body.

Yesterday the Minister of the Economy, Martin Guzmn, acknowledge some problems or objections from the international front in the IMF to reach an agreement and talk “The international community still lacks understanding” to close a deal for debt.

It was later discovered that this front or “lack of international understanding” would be “hard core” in the Dana . directory consists substantially of representatives from United States, Japan, Poland and Germany, among others.

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As described in History writer Government sources participating in the negotiations in Washington on the claims made by some of these “hard” countries when closing agreements for debt repayment relate to the fact that a asks Argentina to show “newer data”.

In practice, this would imply a particular objection to the inflation, deficit, or growth figures that Argentina gives to show its economic figures. The “updates” they spoke of at Casa Rosada and which the IMF’s tough countries were supposed to demand were responding to the understanding of some of the technicians in the negotiations at “more realistic numbers” no.

In government they admit that the data offered to the IMF so far is the one that appeared in the 2022 budget project which was rejected by the opposition in the Chamber of Deputies. There is a projection ceconomic growth 4%; One Dollar: $131.1; inflation to 33%; real salary + 4%; primary deficit of 3.3%; financial deficit 4.9%, among others.

“There are different views within the IMF board to take into account,” he said History writer a prominent government official who negotiated with Washington every step of the deal that Alberto Fernndez hopes to close before March that is when the first major payment of $44,000 million of debt was contracted with the IMF during the administration Mauricio Macri.

At the IMF, there are 24 executive directors who are selected from among the member countries of the IMF. Only The United States, Japan, Germany, France and the United Kingdom may elect directors without assistance from any other country.. China, Saudi Arabia and Russia de facto elect one director each. The other 16 directors are selected by the state bloc.

green light from United States

In the list of tough countries that will request an update of Argentina’s economic data, there are WE that apart from changes in the Republican administration with Donald Trump to a democratic president Joseph Biden, He did little to change his views on the Argentine economy in the IMF’s internal debates.

At the same time, there are countries like Japan demands clear rules of the game from Argentina, greater legal security and redefinition of trade barriers. Some of these claims have slipped before History writer by the Japanese Ambassador in Buenos Aires, Takahiro Nakamae.

The diplomat noted that “for a long time what we emphasized was that What is important in Argentina is a better business environment, including predictable economic policies and legal security. All of this includes negotiations with the IMF,” he said.

When does the agreement with the IMF close?

However, from Casa Rosada they assured that it would not take long for Argentina to close the deal with the IMF and they understand that claims for a credible economic plan have been overcome by Alberto Fernndez’s proposal to submit a bill for a multi-year economic plan.

Therefore, Guzmn in the interview he gave yesterday to the Spanish newspaper El Pas has highlighted Argentina’s decision to want to settle quickly with the IMF. Although he clarified: “It is necessary to get all the necessary international consensus to be able to have an agreement between the two sides.”

Matt Thompson

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