IMF Board will meet on Friday to vote agreement with Argentina

The directory of International Monetary Fund (IMF) will meet next Friday to vote on the agreement reached with Argentina to restructure a debt of 45,000 million dollars and gave the country more time to pay an imminent maturity, the agency reported this Saturday in a statement.

“To give time to contemplate rapidly changing world events, including the war in Ukraine, the IMF Executive Board will meet on Friday, March 25, to discuss Argentina’s request for a Fund-supported program,” the report said. signed by the IMF spokesman, Gerry Rice.

The IMF said that the Argentine authorities informed it that it postponed the payment due dates of next Monday and Tuesday to combine them into one until March 31 for a total equivalent to 2,014 million special drawing rights (SDRs), a figure that represents about $2.8 billion.

“The government’s decision, which does not require the approval of the IMF Executive Board, is consistent with IMF rules and with Argentina remaining up to date with the Fund. Consequently, Argentina will not incur in arrears,” the statement added.

The approval of the agreement by the IMF board is the last step after an arduous negotiation of the pact reached in early March, which last Thursday had its final legislative support and became law, a measure praised by the credit institution .

“We express our satisfaction regarding the recent approval by the Argentine National Congress of the agreement reached with the staff of the IMF to be supported by an Extended Service Agreement of the Fund (SAF),” he said.

“The IMF places great value on the broad social support for the success of the program and the legislative approval is an important signal that Argentina is committed to policies that foster more sustainable and inclusive growth,” the statement added.

The agreement with the IMF establishes a grace period of four and a half years and extends disbursement payments to 10 years, so the country will begin to pay off the debt in 2026 and end in 2034.

It also sets growth targets, lowers the inflationstrengthening of foreign currency reserves and confirms the pattern for the gradual reduction of the fiscal imbalance until the elimination of the deficit in 2025.

The principle of agreement was reached at the beginning of the month with the IMF to supplant the failed program for 57,000 million dollars of 2018, which was unable to avoid an economic crisis and a “default” with the private sector.