[ad_1]
©Reuters. Argentina and the IMF agree on one of the points that obstructed the final agreement
Buenos Aires, March 3 (.).- Argentina said this Thursday that it reached an understanding with the International Monetary Fund (IMF) on the increases in public utility rates, one of the points that stopped the total closing of the agreement to refinance the debt of more than 40 billion dollars, and trusts that it will be able to send it “in the next few hours” to Congress for approval, according to official sources.
“We have already reached agreements on all substantial points. We are in the last hours”, said the spokeswoman for the presidency, Gabriela Cerruti, at a press conference.
“Work continues to translate all the corresponding agreements into a text, translate those texts and have the necessary pertinent documentation to be sent to Congress, we hope in the next few hours”, so that “it begins its treatment”, explained Cerruti.
The spokeswoman detailed the agreement to increase gas and electricity rates for the biennium 2022 and 2023, which “was one of the points that had stopped the total closure of the agreement”, due to the weight of the subsidies in public spending when the program with The IMF wants the primary deficit to reach zero in 2025 and given the need to adapt the variables to the global context of rising gas prices and the war in Ukraine.
The Government of Alberto Fernández will apply a three-tier electricity and gas tariff segmentation plan and will apply the salary variation coefficient (CVS) of the previous year as an objective criterion (in 2021 it was 53.4%), after holding a public hearing at the end of next April.
The first level is that of the users included in the so-called Social Rate, who will suffer an increase in services of 40% of the CVS; for residential users who will continue to receive subsidies, the increase will be 80% of the CVS, and households with the ability to pay will no longer receive subsidies.
Cerruti recognized that the negotiation “takes longer” than is wanted, but that it comes after “this very long fight and very long discussions and subjected to a lot of pressure and many attempts from the most powerful countries.”
The spokeswoman said that this agreement with the IMF is being looked at by the world as “an unusual agreement” based on the historical ones reached by the multilateral organization because “it does not provide for any type of adjustment”, or pension reform, or labor but it does contemplate a social and capital spending floor.
On January 28, Argentina announced an understanding of certain policies with the IMF to refinance around 44.5 billion dollars after months of intense negotiations marked by the need for the Argentine Government to extend payment terms, given the lack of resources to pay maturities. , beginning with that of March 22 next.
To enter into force, this program must be formally ratified by the IMF board and the Argentine Congress, where no party has an absolute majority and where the ruling party has already suffered several setbacks in the support of its own caucus, such as the resignation of Máximo Kirchner – son of former president Néstor Kirchner (2003-2007) and also former president (2007-2015) and current vice president Cristina Fernández- as head of the ruling group in Deputies.
(video)
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
[ad_2]